You might’ve heard Madeira being dubbed the “Hawaii of Europe,” or maybe it’s been whispered about as the next big thing on the Euro travel scene. Either way, this little Portuguese island is a must-visit on any backpacker’s bucket list and a massive hidden gem compared to its bigger European siblings.
Funchal, the island’s capital, oozes history and charm. It’s got scenic cable cars, and picturesque coast lines and its famous Mercado dos Lavradores. But don’t just stick to the city – Madeira’s got wild adventures waiting for you. Think epic hikes, surf-ready waves, and mind blowing waterfalls.
But before you go chasing waterfalls and sipping poncha, you need to nail down a place to crash. And let’s be real – Madeira’s hostel scene might seem a bit… low-key for an island paradise.
Luckily for you, I’ve scoped out the best hostels in Madeira. Whether you are trying to party hard, unwind in style, sleep cheap, or find a comfy spot to call your office, I’ve got you covered.
This list will help you find the perfect base to explore everything Madeira has to offer. Get ready for some seriously breathtaking views, killer sunsets, and hostel vibes that will make you never want to leave.
Are you ready? Let’s get stuck in.
Photo: Chris Lininger
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Quick Answer: The Best Hostels in Madeira
- Best Overall Hostel in Madeira – The Waves Hostel
- Best Hostel in Madeira for Solo Travellers – Santa Maria Hostel
- Best Cheap Hostel in Madeira – 109 Funchal Hostel
- Best Party Hostel in Madeira – Jaca Hostel Porto da Cruz
- Best Hostel for Digital Nomads in Madeira – Jaca Hostel Funchal
Photo: Chris Lininger
The 5 Best Hostels in Madeira
Planning to visit Madeira this summer? Don’t wait until the last minute to snag the best hostel for your trip. Luckily, you’ve got plenty of choices out there. To save you from the stress of hostel hunting, I’ve rounded up my top 5 favourites below. Happy hunting!
1. The Waves Hostel – Best Overall Hostel in Madeira
- Private Room: From $62
- Address: ER Avenida Marques Rosa 97, 9240-050 São Vicente, Portugal
This hostel has all the vibes! Waves Hostel is the ultimate chill spot where you can meet cool people backpacking Portugal and vibe with the awesome owners. You’ve got a killer kitchen, vinyl records to spin, books to dive into, and the soothing sound of the waves – because what would Waves Hostel be without its namesake zen?
Why you’ll love this hostel:
- Chill Vibes
- Right by the Sea
- Lots of Freebies
The kitchen is fully equipped, and the owner goes the extra mile, bringing fresh veggies daily – for free – along with seasonings and oil. If you need anything else like sunscreen or a yoga mat, they’ve also got you covered, at no extra cost.
The rooms are spacious and comfy, with plenty of storage. And the best part? No dorms. That’s right, you get your own private room for hostel prices without losing out on the social scene. As a solo traveller, it’s the perfect mix of privacy and socialising, making it an ideal base for hiking and meeting like-minded travellers on this unreal European island.
2. Santa Maria Hostel – Best Hostel in Madeira for Solo Travellers
- Dorm (mixed): From $31
- Private Room: From $64
- Address: Rua de Santa Maria nº145, Santa Maria, 9060-200 Funchal, Portugal
It’s no wonder Santa Maria Hostel is a top pick for solo travellers on the island. This place has it all – great prices, a prime location, a variety of room options, and fantastic common areas to chill out and meet other travellers.
Why you’ll love this hostel:
- Social Atmosphere
- Outdoor Terrace
- Central Location
It’s the kind of spot where it’s super easy to find people to hang with or join in on activities. The cosy, social vibe is perfect for solo travellers, especially those new to Madeira. Trust me, you’ll have a hard time not bumping into someone and striking up a conversation.
Santa Maria Hostel is housed in a renovated school building in the historic town centre of Funchal. It’s nestled in the heart of the lively, narrow streets, super close to the beach and all the city sights and its rich history, including the popular cable car. You’ll be right in the thick of the buzz and it’s a must-see in Portugal!
3. 109 Funchal Hostel – Best Cheap Hostel in Madeira
- Dorm (mixed): From $38
- Address: Rua da Conceição, 109, Funchal, Portugal
At a short walking distance from the famous Old Town, right in the heart of the city centre, is Funchal109. Preserving its original architecture, this 19th-century building is adorned with cute little details like its original wooden floors. It now houses one of Madeira’s cheapest hostels on the island so you won’t have to worry splashing the cash in Portugal.
Why you’ll love this hostel:
- Cosy Dorm Rooms
- Great Location
- Heritage Building
Expect comfy beds, decent-sized lockers and a bit of noise from the street outdoors that can’t be helped when you’re in the middle of the buzz of the Old Town! It’s also just steps away from some of Portugal’s most stunning beaches, so you’ll be getting the best of both worlds in this location.
It’s a clean and lovely hostel with all you need, and helpful managers as well. There’s always a cool crowd staying here that you’ll inevitably end up hiking or surfing with. Pro tip: If you have any interest in hiking, make sure you chat with the owner as she is an expert in the best hikes in Madeira.
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View on Osprey View on REI4. Jaca Hostel Porto da Cruz – Best Party Hostel in Madeira
- Dorm (mixed): From $41
- Address: Rua Dr João Abel de Freitas nº1, Madeira Island, Portugal
Look, I get it – Madeira isn’t your typical wild party scene like some other European hotspots. But if you’re after a social spot in the heart of the island’s best bars and restaurants, Jaca Hostel Porto da Cruz is a solid choice.
Why you’ll love this hostel:
- Social Events
- Clean and Modern Shared Bathroom
- Great Communal Spaces
Sure, it’s not a rager, but this hostel knows how to keep the vibes high with its organised events. Monday burger nights are a highlight, with the staff whipping up a homemade spread. And on Fridays, it’s pizza night – grab a few beers, chow down on some slices, and see where the night takes you.
The communal areas are oh-so-cool, perfect for kicking back, socialising, or plotting your next adventure in Madeira. It’s simple yet cosy, with a fantastic community feel. The staff are super friendly and always ready to give great recommendations and hidden gems.
5. Jaca Hostel Funchal – Best Hostel for Digital Nomads in Madeira
- Private Room: From $98
- Address: Rua dos Ferreiros, 140, Sao Pedro, 9000-082 Funchal, Portugal
The vibe at Jaca Hostel Funchal is super chilled, making it perfect for digital nomads needing to crack on with a bit of work. The rooms are bright, the beds are comfy, and the location is spot on – right in central Funchal, within walking distance of the marina, shops, and restaurants.
Why you’ll love this hostel:
- Chill Atmosphere
- Great Location
- Modern Amenities
Everything here is modern and the location makes arriving and leaving a breeze. It’s a bit quieter than other hostels, meaning you can get some solo chill time when you need it. But don’t worry, you’ll still meet amazing people and find something fun to do at night.
The courtyard is perfect for socializing, and the adjacent cafe is the hostel’s biggest asset. It’s air-conditioned, does a mean cup of coffee, and is ideal for digital nomads in Portugal needing a solid base on the island.
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Hide Yo’ Money!More Epic Madeira Hostels
6. 29 Madeira Hostel
- Dorm (mixed): From $27
- Address: Rua dos Netos, nº 29, Sao Pedro, 9000-084 Funchal, Portugal
The hostel’s unique decor and interesting atmosphere set it apart from the rest. Plus, the location is unbeatable in the heart of Funchal, one of the most beautiful places in Portugal! Whether you’re up for a morning run by the ocean or a sunset sail from the port, everything is just a short stroll away.
The kitchen is fully stocked, and the staff are incredibly helpful. Each bed comes with a lamp, a socket, and a privacy curtain, plus a spacious locker underneath. The shared bathroom is clean and roomy, and you even get a towel free of charge. The patio is a nice touch, especially for enjoying your morning coffee.
7. Residencial Funchal
- Private Room: From $71
- Address: Rua do Hospital Velho n 19 A, Funchal, Portugal
Residencial Funchal is perfect if you’re after a bit more privacy in one of the twin rooms with your pals or partner travelling on a budget. Conveniently located in central Madeira, it puts you right in the heart of Funchal’s action.
Step outside, and you’re in the Zona Velha, with its gorgeously painted doors, and the Mercado do Lavradores, bursting with fruit, veggies, fish, and flowers. This historic area has had a major glow-up into a cultural hotspot. You can feast your eyes on stunning murals that local artists have splashed across the houses lining the narrow streets.
8. Madeira Native Motion
- Private Room: From $72
- Address: Full hostel address
Alright, so this isn’t your typical hostel scene – it’s a super affordable Madeiran B&B for those craving a bit more privacy than a dorm can offer who want to escape the dreaded dorm bunk beds. Nestled in Lombada do Marinheiros-Fajã da Ovelha, it’s about a 50-minute drive from the city centre, making it a perfect escape from the hustle and bustle.
Madeira Native Motion can hook you up with all of the adreneline junkie fuel that makes Madeira so great like surfing, boating, hiking, and paragliding at discounted rates. Just a heads-up: it’s a bit of a trek to get here, so make sure to stock up on groceries for the communal kitchen or BBQ.
9. Stay Inn Funchal
Ironically named, the Stay Inn Funchal is in central Funchal and an easy walk to restaurants and clubs. The hostel also features cosy dorms, a private bathroom and 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.
10. Reed’s View
The most important needs of the digital nomad are usually internet speed and signal. Most places on the island provide free WiFi but don’t host communal computers, which makes it a solid choice 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.
Getting Insured BEFORE Visiting Madeira
Unfortunately, things can go wrong when you least expect it. This is why good travel insurance is essential before you head on your trip to Madeira.
ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.
They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.
SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!
Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.
FAQs About Hostels in Madeira
Here are some questions backpackers ask about Madeira hostels.
What to Pack for your Madeira Hostel
Pants, socks, underwear, soap?! Take it from me, packing for a hostel stay is not always quite as straightforward as it seems. Working out what to bring and what to leave at home is an art I have perfected over many years.
Ear Plugs
Snoring dorm-mates can ruin your nights rest and seriously damage the hostel experience. This is why I always travel with a pack of decent ear plugs.
Hanging Laundry Bag
Trust us, this is an absolute game changer. Super compact, a hanging mesh laundry bag stops your dirty clothes from stinking, you don’t know how much you need one of these… so just get it, thank us later.
Sea To Summit Micro Towel
Hostel towels are scummy and take forever to dry. Microfibre towels dry quickly, are compact, lightweight, and can be used as a blanket or yoga mat if need be.
Monopoly Deal
Forget about Poker! Monopoly Deal is the single best travel card game that we have ever played. Works with 2-5 players and guarantees happy days.
Grayl Geopress Water Bottle
Always travel with a water bottle! They save you money and reduce your plastic footprint on our planet. The Grayl Geopress acts as a purifier AND temperature regulator. Boom!
Check out my definitive Hostel Packing list for even more top hostel packing tips!
How much do hostels in Madeira cost?
The average price of a dorm in Madeira starts at $41 and the private rooms can go from $65 to $100 per night. If you’re travelling during low season however you can snag a deal with a dorm bed for a very cheap price if you book far enough in advance!
What is the best place to stay in Madeira for couples?
If you’re after some social vibes, Jaca Hostel Funchal is my go-to for couples in Madeira. But if you’re craving a budget-friendly romantic escape, Residencial Funchal is where it’s at.
What is the best place to stay in Madeira near the airport?
The closest hostel around Madeira International Airport is Jaca Hostel Porto da Cruz which is just a 17min ride. It’s a great hostel with an amazing garden and a large lounge and they can sort your airport transfers for you too!
Final Thoughts on Madeira’s Hostels
Madeira’s been flying under the radar for far too long, but it’s finally getting the spotlight it deserves. Before it blows up like other European hotspots, you need to see what the hype is all about and experience this hidden gem for yourself.
If you’re cruising around Portugal, Madeira is a must-see. Whether you’re into soaking up history, exploring nature, or just lounging on sun-drenched beaches, this island has got you covered.
If you’re still stuck on where to stay, my favourite hostel that I come back to time and time again is The Waves Hostel. The vibes are 10/10 here – stellar amenities, amazing people, and the soothing sound of waves 24/7. What’s not to love?
Plus, you’ll never be far from some of Madeira’s best trails, ideal for adventure lovers.
That’s all from me friends. Here’s to finding those perfect waves, basking in the sunshine, and meeting the warmest folks on this beautiful Portuguese island. Happy travels!
Photo: Chris Lininger
- Check out our extensive guide to backpacking in Portugal for a wealth of info!
- Not sure what to do once you arrive? We’ve got all the beautiful places in Portugal covered.
- Check out the best places to stay in Madeira before you arrive.
- Remember to grab yourself an international sim card for Portugal to avoid any issues.
- Prepare for your trip with our backpacking packing list.
- Get ready for your next destination with our ultimate Europe backpacking guide.
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