The picturesque and ancient Funchal, the main city of Madeira, attracts tourists not only in the summer: there is no winter, and even in December the water near the coast warms up to +20 C. Besides the beaches, Funchal is very interesting for its sights, such as the Paleiro gardens, the cathedral, the monastery of St. Clara and others. After the tour, you can have a great time in one of the countless restaurants, and as for accommodation options, Funchal has 5-star hotels, apartments, and hostels - as they say, for every taste and budget.
The cheapest accommodation will be in a hostel, where you can find a place in a dormitory room for 12-15 euros. The price of a single room in a guest house is 18-30 euros. Hotels are characterized by a wide variation in the cost of living: a comparison of hotels shows that a room in them can cost 35 or 2000 euros per day in the presidential suite of a 5-star hotel complex. On average, the cheapest room in a 3-star hotel costs 55-80 euros, in a 4-star hotel - 90-100 euros. You will have to pay 50-80 euros per day for living in an apartment, but if the apartment is located in an elite villa on the ocean shore, then 2700 euros per day is not the limit.
If you are going to arrive in January-February hoping to save money, then you should not expect a significant reduction in costs: in winter, prices in Funchal hotels decrease by only 10-12%. It is better to book the hotel in advance, using special offers and promotions, as well as noting the "Best offer" and "Economy / budget" parameters while searching on Hotelhunter.