5 Best Hostels in Madeira
João Petersen · Last updated September 2, 2026

This list covers five hostels in Madeira: three in Funchal, one in São Vicente and one in Porto da Cruz. I picked them by location, what each property offers and guest ratings, rather than from stays of my own.
It starts with a short guide to the main areas to stay in Madeira, then a price comparison for dorms and private rooms in euros, and the full list.
Prices change with the season, so check current rates before you book.
Some of the booking links on this page are affiliate links; I may earn a commission at no extra cost to you.
Where to Stay in Madeira?
Where you stay in Madeira depends on what you want to do, from the capital and its old town to beach villages, the north coast pools and the mountains. Here are the main areas and what each is known for.
1. Funchal – Best for First-Time Visitors Funchal is the capital, on the south coast. It has the Old Town, local markets and the Monte cable car, which makes it an easy base for a first visit.
- Old Town (Zona Velha): Ideal for local culture, with historic streets and many dining options.
- Lido Area: Great for beach access, swimming pools, and promenades.
- City Center: Convenient for shopping, museums, and transportation.
2. Calheta – Best for Beach Lovers Calheta is on the southwest coast and has one of the few sandy beaches on the island. The sand was imported from Morocco when the beach opened in 2004.
- Calheta Beach Area: Close to the beach, cafés, and restaurants.
- Hillside Villas: Higher up, with views over the ocean.
3. Machico – Best for Tradition and Adventure Machico is on the east coast. It combines historical sites with access to hiking trails and beaches.
- Town Center: Near the beach, landmarks, and local dining.
- Near the Marina: For ocean views and water activities.
4. Santa Cruz – Best for Families Santa Cruz is on the east coast, about 16 km from Funchal. It has Praia das Palmeiras, and the Aquaparque water park is a 10-minute walk from the beach.
- Near the Beach: Easy access to Praia das Palmeiras and seaside dining.
- Village Center: Shops and restaurants within walking distance.
5. Ponta do Sol – Best for Sunshine Ponta do Sol is on the south coast, west of Ribeira Brava. Its name means Sun Point, and it is one of the sunniest places on the island.
- Seaside: Close to Praia da Ponta do Sol, a pebble beach.
- Hillside Accommodations: Higher up, with views over the ocean.
6. São Vicente – Best for Nature Lovers São Vicente is on the north coast, between the mountains and the sea, and is known for its lava caves.
- Village Center: Close to caves, museums, and local spots.
- Mountain Retreats: Higher up, with valley views.
7. Porto Moniz – Best for the Natural Pools Porto Moniz is on the north coast and is known for its volcanic natural pools.
- Near the Natural Pools: Easy access to the pools and nearby restaurants.
- Hilltop Locations: Higher up, with coastal views.
8. Ribeira Brava – Best for a Small-Town Base Ribeira Brava is on the south coast, 14 km west of Funchal. The town is built around a small bay with a pebble beach and a promenade, and the 15th-century Church of São Bento is in the center.
- Near the Town Center: Convenient for shops, the beach, and local attractions.
- Inland Villages: Rural accommodations away from the coast.
9. Caniço – Best for a Base Near Funchal Caniço is on the southeast coast, about 6 km from Funchal by the fast road and 12 km by the old road.
- Near Garajau: Close to the Cristo Rei statue and beaches.
- Caniço de Baixo: Coastal neighborhood with sea views.
Bonus Areas to Consider:
- Porto da Cruz: On the northeast coast below the Penha d’Águia rock, popular with surfers and hikers.
- Porto Santo: Known for its sandy beaches, and reached by ferry or a short flight.
- Santana: Known for its traditional thatched-roof houses and for being close to the Laurisilva forest.
Price Comparison
Dorms and Private Rooms in EUR
Hostels
| Hotel | Privates | Dorms |
|---|---|---|
| Jaca Hostel Porto da Cruz (8.9) | 85€ | 32€ |
| The Waves Hostel (9.2) | 30€ | – |
| Jaca Hostel Funchal (8.7) | 89€ | 37€ |
| 29 Madeira Hostel (8.4) | 46€ | 25€ |
| Santa Maria Hostel (8.5) | 77€ | 30€ |
The Coolest Hostels in 2026
Jaca Hostel Porto da Cruz
Jaca Porto da Cruz has private and shared rooms and is a two-minute walk from the beach. Its green courtyard is where guests and locals gather, and the hostel has spacious common areas.
There is a pizza night every Friday, with wood-fired pizzas made by Chef Ricardo Vieira. The hostel can connect guests with local surf schools for lessons and equipment, and with yoga, canyoning and whale watching. It has family-friendly facilities. The table lists 32€ for a dorm and 85€ for a private room, with an 8.9 rating.
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The Waves Hostel
The Waves Hostel is in São Vicente, on the north coast, 1.7 km from São Vicente Beach.
It has non-smoking rooms, a shared lounge, free Wi-Fi and a terrace. The listing names the Porto Moniz Natural Swimming Pools, Cabo Girão and the traditional houses of Santana as nearby attractions, with the Pico dos Barcelos viewpoint and Pico Ruivo also within reach.
The layout is unusual, with semi-private rooms divided by curtains and half shutters. Each room has a desk, and there are shared bathrooms, a shared kitchen and a deck. Bed linen and a hairdryer are provided. A paid airport shuttle is available, though the airport is about 51 km away. The table lists 30€ for a private room and no dorm price, with a 9.2 rating, the highest of the five.
Jaca Hostel Funchal
Jaca Hostel Funchal is a minimalist boutique hostel in central Funchal, with a garden, a bar and sea views. It has private rooms with en-suite bathrooms and shared rooms. It is 800 meters from Almirante Reis Beach, with Fort of São Tiago and Marina do Funchal nearby.
Rooms are equipped with private bathrooms and free Wi-Fi, and some have city views. The reception, Jacafé, can store bags for early arrivals, and late arrivals can check in themselves with access codes sent by message. The table lists 37€ for a dorm and 89€ for a private room, with an 8.7 rating.
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29 Madeira Hostel
29 Madeira Hostel is on three floors of a historic 1937 building in central Funchal, with private rooms and dorms. The decoration is Madeira-inspired, with traditional wicker work and a wicker ceiling.
The hostel shows what it describes as the largest brinquinho, a traditional Madeiran musical instrument. Dorms have mattresses, built-in lockers, reading lights and power outlets, and the shared bathrooms have hot showers around the clock.
The Town Hall, the old market, the promenade and the marina are close by. There is a communal kitchen, free Wi-Fi, laundry and a lounge. The table lists 25€ for a dorm, the cheapest of the five, and 46€ for a private room, with an 8.4 rating, the lowest in the group.
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Santa Maria Hostel
Santa Maria Hostel is in a historic building on Santa Maria Street, in the Old Town of Funchal. Rooms range from private ensuites and twin rooms to dormitories for eight, with bunk beds, lockers, reading lights and power outlets, and large bathrooms with hot showers. Bed linen is provided, and towels and laundry cost extra.
The restaurant is in a former elementary school and serves regional Madeiran, Portuguese and international dishes, with homemade bread and seafood.
The hostel is close to the city center and the seafront, near the “Painted Doors” art project and the nightlife, and the airport is 17 km away. It has a mezzanine lounge and outdoor seating. The table lists 30€ for a dorm and 77€ for a private room, with an 8.5 rating.
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More hostel Accommodation guides: Tokyo, Japan | Osaka, Japan | Kyoto, Japan | Sri Lanka | Lisbon, Portugal | Istanbul, Turkey | Zermatt, Switzerland
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