Best Hostels in Madeira – Visit Madeira on a budget

No matter where the adventure takes us, we all want to make the most out of our budget when we travel. In the true spirit of backpacking, staying in hostels is a great way to do this. Madeira may not be crawling with them, but don’t let that fool you! There are great options to choose from that we think you’ll love. This guide is going to help you find the best hostels in Madeira.

PLAN YOUR TRIP TO MADEIRA

Learn more about Madeira Island – the different areas and how to get around – with our Full Guide to Madeira.

Looking for a unique stay? Check out our selection of the Best Airbnbs in Madeira.

Get inspired with our Best Things to Do in Madeira guide to learn about what to do and explore.

BEST HOSTELS IN MADEIRA

If you’re looking for accommodations that are budget-friendly in Madeira, chances are you’re thinking about staying in a communal accommodation like a hostel. Hostels are a great way to meet other travellers and get a local flair when you’re on the road.

Below we have listed the best hostels on the island (less than €25/night per person). Private rooms are intended for 2 people unless otherwise specified. The ones we chose come highly rated, have a clean, beautiful design, good common areas, a nice atmosphere and are conveniently located.

BEST HOSTEL IN MADEIRA:

Our top choice of hostels is Jaca Hostel in Porto da Cruz, Madeira! Located in the municipality of Machico in the northeastern corner of the Island, this 19th-century family home-turned hostel will give you that feeling of home away from home. We loved this hostel for its nice, cosy atmosphere, spacious and clean communal areas with a lot of seating, and the convenience of the location.

Don’t miss: Every Friday is Pizza Night! A professional pizzaiolo hosts the party by preparing mouth-watering pizzas, made in a wood-burning stove, in the comfort of the hostel.

Porto da Cruz is also a very interesting and laid-back place to stay in Madeira. It has 5 surf schools which attract many surfers from Europe and the world in general. While the hostel’s kitchen is fully furnished and equipped, guests love the proximity of the hostel to Pipa’s, a surprisingly good and cheap restaurant/next bar 5 metres away from the Hostel.

The hostel has different kinds of accommodation options depending on what you’re looking for. It has 6-bed and 4-bed dormitories, as well as the option of booking a private room with a private bathroom.

📍 CLOSE TO: Pico Ruivo Mountain, Caldeirao Verde, Ponta de São Lourenço, Vereda do Larano.

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BEST HOSTELS IN FUNCHAL

The 29 Madeira Hostel is located in the centre of Madeira’s capital Funchal. Conveniently situated near bars, restaurants and walking distance to the old city centre, this hostel is bound not to disappoint! Guests love it here for the friendly staff, the cleanliness of the rooms and natural light, as well as the many communal areas like the kitchen, patio and cool private outdoor garden.

With these shared spaces, you’re bound to get in touch with other travellers visiting. It has nicely designed 4-bed dormitories and the option of an economy double (with shared bathrooms).

📍 CLOSE TO: Funchal Old Town, Monte Palace, Calhau da Lapa, Cabo Girão, Pico do Arieiro, Miradouro Eira do Serrado.

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If you liked the Jaca Hostel in Porto da Cruz, you will appreciate also their Hostel in Funchal. Jaca Hostel Funchal is a modern, boutique hostel located in the centre of Funchal. The hostel is very new and you will love the wooden floors, the fully equipped kitchen and the outdoor patio.

The common areas are smaller compared to the Jaca Hostel in Porto da Cruz, but they are still better than other hostels in Funchal.

All twin rooms are beautifully designed, have great mattresses and come with a private bathroom.

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Santa Maria Hostel is located in the old town of Funchal within a historical and traditional building. This colourful hostel has a vintage-décor making its atmosphere truly charming! Travellers enjoy this hostel for the helpful staff, spacious and well-designed rooms, cleanliness and convenient location.

If you’re looking to dine in, the hostel has its own restaurant on the ground floor that serves up local and international dishes. If you want to cook up a storm yourself, you’ll have access to the shared kitchen on the premises. The hostel also features a private outdoor patio and lounge to hang out and relax on your trip.

FEMALE DORMITORY: consider staying at Santa Maria Hostel if you are looking for an all-women’s dormitory.

📍 CLOSE TO: Funchal Old Town, Monte Palace, Cabo Girão, Calhau da Lapa, Pico do Arieiro, Miradouro Eira do Serrado.

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109 Hostel Funchal is conveniently located in the heart of Madeira’s capital city. It is a small hostel, which makes it easier to connect and make friends with other guests. The common areas are very small, but this is a common problem of all hostels across Funchal.

The owner, Rosa, is an amazing host and she is very helpful for any needs you may have. We’ve seen her driving guests to the mountains of Madeira and picking them up on the other side after the Pico do Arieiro to Pico Ruivo hike, at a very cheap price. She really loves and cares about the place and it makes it special and homely.

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OTHER HOSTELS IN MADEIRA:

Unlike the previous hostels, The Waves Hostel doesn’t have any dormitories. Instead, it features well-organized single rooms for adult guests. The hostel is located in São Vicente, on the northern side of the Island.

Located right on the ocean, and as the names states, you can admire the waves or catch a sunset from the hostel’s beautiful outdoor terrace. The hostel includes a shared bathroom, bed linen for each room and free WiFi for all guests. When you’re here, cook up a great meal with other travellers with the hostel’s barbeque facilities or enjoy a dip in the water on their private beach. You read that right – a private beach!

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Looking for a unique experience? Check out the Best Airbnbs in Madeira