You may have heard of Madeira as the “Hawaii of Europe” – or that it’s a hidden gem that’s quickly becoming the next European hot spot.  Either way, this little Portuguese island is a destination you must check off your travel bucket list.

The larger towns and capital city of Funchal have a rich, historical past that make for some pretty cool sightseeing. Visitors have a lot to explore with Funchal’s Mercado dos Lavradores, cable cars, and the promenade. Outside of the city, the island offers amazing adventures for nature-lovers, like catching some waves or hitting up some of its famed hiking trails.

Most hostels in Madeira are in the capital of Funchal, which provides easy access on foot to the marina and historic old-town city center. Some hostels and low-cost hotels are located in coastal towns around the island. These are closer to the natural attractions in Madeira, like surfing and hiking. Apartments offer a more private stay to travelers, at prices that won’t break the bank.

Quick Answer: The Best Hostels in Madeira

Best Hotels in Madeira

The Best Hostels in Madeira

Overall Best Hostel in Madeira – Santa Maria Hostel

Santa Maria Hostel Madeira
Santa Maria Hostel has everything you could want!
  • $
  • Location: Funchal
  • Free WiFi
  • Free linens
  • Outdoor area
  • Free cake!

It’s pretty easy to see why Santa Maria Hostel is our pick for the Best Hostel in Madeira. It has it all – good prices, a central location, various room options, and awesome common areas to relax and meet other travelers.

This hostel is a renovated school building in the historic town center of Funchal, and sits right in the middle of the tiny, energetic streets. It’s also super close to the beach and all the city sights, including the popular cable car.

Best Cheap Hostel in Madeira – 109 Funchal Hostel

109 Funchal Hostel Madeira
  • $
  • Location: Funchal
  • Free WiFi
  • Free linens & towels

This traditional hostel will set you up for a great stay at a low cost in Madeira. 109 Funchal Hostel conveniently offers both affordable dorm and private rooms, so you won’t have to worry when traveling on a budget.

The hostel is in the center of Funchal and just steps away from the beach, so you’ll be close to everything the area has to offer.

Best Hostel for Solo Travellers in Madeira – Madeira Native Motion

Madeira Native Motion Madeira
The perfect escape
  • Location: Lombada dos Marinheiros- Fajã da Ovelha
  • Free WiFi
  • Infinity pool
  • BBQ

Madeira Native Motion is an oasis for the solo traveler keen to dive into that hostel life. Located in Lombada do Marinheiros-Fajã da Ovelha, this hostel is a 50 minute drive from the city, making it the perfect place to get away.

Madeira Native Motion can help arrange outdoor activities like surfing, boating, hiking/biking, and paragliding at discounted prices. It’s a bit of a drive to get here, so remember to stock up on groceries for the communal kitchen or BBQ.

Best Party Hostel in Madeira – Stay Inn Funchal

Stay Inn Funchal Madeira
  • $$ 
  • Location: Funchal
  • Free WiFi
  • Restaurant/bar
  • Fitness room
  • Terrace 

Ironically named, the Stay Inn Funchal is in a central location and an easy walk to restaurants and clubs. The hostel also features its own bar, which is ideal if you’re after a warm-up drink before hitting the town.

In true party-hostel style, late check-out is permitted. It comes in pretty handy when you’ve stayed out a bit late and don’t feel like rising and shining the next morning.

Want to save the world?
Grayl Geopress Water Purifier Bottle

Single-use plastic bottles are a huge threat to Marine Life – Be a part of the solution and travel with a filter water bottle.

The GRAYL GEOPRESS water bottle is the ONLY all-in-one filter water bottle setup you’ll need. Whether you need to purify the water from a hostel sink in Kathmandu or a stream trickle in the Andes, the Geopress has got you covered.

Read our full review of the GRAYL GEOPRESS!

Best Hostel with a Private Room in Madeira – Residencial Funchal

Residencial Funchal Madeira
Private rooms at affordable rates!
  • Free WiFi
  • Location: Funchal
  • Free linens & towels

Residencial Funchal is the best place if you’re looking for more private accommodation. It’s in a central area of Madeira, right in the middle of everything you want to do in Funchal.

Immediately outside you’ll find the Zona Velha with its beautifully painted doors, and the Mercado do Lavradores, the market of fruit, veggies, fish, and flowers.

Best Hostel for Couples in Madeira – Quinta Splendida Wellness & Botanical Garden

Quinta Splendida Wellness & Botanical Garden Madeira
The views here are stunning
  • $$$$
  • Location: Canico
  • Pool
  • Fitness room
  • Restaurant & bar
  • Billiards 

Quinta Splendida Wellness & Botanical Garden is the getaway you and your partner are dreaming about. This restored 19th century Manor House is set in a 30,000 square meter garden (with over 1,000 different types of plants), overlooking the Atlantic Ocean.

You can relax by the heated outdoor pool or book spa treatments together. Some rooms have kitchens so you can make your own meal, unless you’d prefer to have a romantic dinner at the restaurant.  

Things DO go missing sometimes…

lock iconPsst! Heading to a hostel? Don’t forget to pack a padlock! It’s well worth having one so you can secure your locker and protect your stuff!

Best Hostel for Digital Nomads in Madeira – Reed’s View

Reed’s View Madeira
Work with a view
  • $$$ 
  • Location: Santa Cruz
  • Free WiFi
  • Free linens & towels 
  • Parking
  • Kitchen
  • Balcony

The most important needs of the digital nomad are usually internet speed and signal. Most places on the islane provide free WiFi but don’t host communal computers, which makes this hostel our top pick for digital nomads.

As we live in the digital age, the tech-savvy of us usually bring our devices with us. In your own private apartment, you can hook up to the free WiFi without someone else slowing it down – a luxury.

The BEST Travel Backpack?!
aer travel pack 2 backpack

Pssssst! Not picked the perfect travel backpack yet? The Broke Backpacker team has tried out over thirty backpacks this year! Our favourite travel backpack is the Aer Travel Pack 2.

View on AER

What to Pack for your Madeira Hostel

Pants, socks, underwear… Here are some other items you might not have thought to pack.

AR Towel

1. Active Roots Microfiber Towel: Quick-drying, lightweight, super soft and compact – the Active Roots Microfiber Towel is essential for every backpacker. No need to use the scabby towels your hostel may or may not provide! Use it for drying off, as a yoga towel or even as a picnic blanket – the options don’t stop here. Made of antibacterial material, you don’t have to worry about your towel starting to smell unpleasant either after lots of use.

Active Roots Water Bottle

2. Active Roots Water Bottle: Sturdy and durable, the Active Roots water bottle survives the roughest adventures while keeping your drink cold or hot for at least 24 hours. Vacuum-sealed and made from stainless steel, the bottle can fit 25oz, which is plenty to keep you hydrated. Super cool bonus: the bottle isn’t just super useful, it helps to reduce the single-use plastic waste – save the planet by filling up your bottle.

Playing Cards

3. Playing Cards: Name your ideal night: I’m for a few cheap beers and some card games. Oh, and you don’t even have to be drinking to enjoy a game – having cards with you traveling definitely helps out on those long airplane or beach days! Make sure to snag a waterproof deck to protect from the pool, ocean or Chang.

Headphone Spltter

4. Headphone Splitter: You’re the one with the Netflix account and your friend wants to watch too. But what if you don’t want to share headphones, or you’re good people who wouldn’t disturb your dorm mates? That’s not going to be a problem with this Headphone Splitter! Plug in two pairs of headphones at the same time, so that both of you can listen to music or watch shows simultaneously. It comes in handy and won’t weigh you down.


5. Power Bank: Everyone knows that mini heart attack when your phone is about to run out of power. Surviving long bus rides without charging stations can be agonizing, which is why every backpacker should have this Anker Power Bank. You can charge your phone up to 5 times, or plug in two devices simultaneously. With high-speed charging and enough power to keep you going for days, you can conquer even the biggest adventures without a problem.

Travel Pillow

6. TRTL Travel Pillow: Nothing is worse than a sleep-deprived and grumpy backpacker. Do yourself a favour and get some decent rest with this comfortable TRTL travel pillow. The ergonomic design makes it possible to sleep upright, which can be a real struggle with normal neck pillows. Having this cool pillow makes long bus rides or flights way more enjoyable – and who knows, maybe you’ll even be looking forward to it next time. If so, leave those guys a good review.

Final Thoughts on the Best Hostels in Madeira

You can’t go wrong with a stay on Madeira if you’re traveling around Portugal. You definitely won’t run out of things to do, whether you’re into history, nature or just enjoy chilling on the beaches.

Whether you stay at Santa Maria Hostel or any of the others on our list, you’ll be sure to totally enjoy yourself without compromising your trip or your wallet. Plus, you’ll never be far from some of Madeira’s best trails, ideal for adventure lovers .

And don’t forget Travel Insurance! We’ve put together a roundup of Travel Insurance for backpackers – check it out here, or if you’re low on time, get a quote from World Nomads, our favorite travel insurance provider.

Getting an estimate from World Nomads is simple – just click the button or image below, fill out the necessary info, and you’re on your way!

world nomads insurance banner

Do you own or run a kick ass hostel? Want to be featured in this list? Get in touch at [email protected]

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