The Best Hostels in Madeira Island 2024: Top Picks and Prices

Once known as a serene retreat for retirees and cruise-goers, Madeira has recently redefined itself as a vibrant destination for all ages. Thanks to its safe destination status during the pandemic and the rise of the digital nomad village in Ponta do Sol, this Portuguese island is now attracting a younger crowd eager to explore its hidden gems.

From luxurious spa hotels to charming boutique stays, Madeira offers a range of accommodations that cater to all tastes and budgets. Whether you dream of lounging on golden beaches, dining in Michelin-starred restaurants, or embarking on breathtaking hikes, Madeira has a perfect place for you. Here’s your ultimate guide to the best hotels in Madeira island for 2024.

1. Best Spa Hotel: Savoy Palace (Funchal)

Savoy Palace is an oasis of relaxation and luxury in the heart of Funchal. Opened in 2020, this hotel boasts one of the largest spas in Portugal, featuring 11 treatment rooms, a sauna, a steam room, sensory showers, and an ice fountain. Indulge in their signature Laurea Massage, where volcanic stones are used to work their magic on your muscles.

If you want to splurge, opt for the Rooftop Presidential Suite with its private indoor pool and midnight swim options. The hotel is just a few minutes away from Rua Imperatriz Dona Amélia, a burgeoning nightlife spot that promises a lively evening.

2. Best Beach Hotel: Pestana Porto Santo (Campo de Baixo, Porto Santo)

For those dreaming of sandy shores and warm waves, the Pestana Porto Santo is your go-to destination. Located on the quieter island of Porto Santo, a ferry ride or a 25-minute flight from Madeira, this resort offers direct access to pristine beaches and a gorgeous outdoor pool. With its terracotta roofs and lush gardens, the all-inclusive resort feels like a small, welcoming village. Enjoy diverse dining options, sports facilities, and a spa that caters to all your relaxation needs.

3. Best City Hotel: Three House (Funchal)

If you prefer to stay close to the action, Three House in the heart of Funchal is the place to be. This trendy hotel features plant-filled rooftops, regular DJ sessions, and brunch deals that draw in a young, vibrant crowd. Choose between studios or two-bedroom apartments with minimalist decor and fully-equipped kitchens (complete with a Smeg fridge). Head up to the rooftop for panoramic sea and mountain views, or relax with a cocktail from the bar after a long day of exploring.

4. Best Boutique Hotel: 1905 Zino’s Palace (Ponta do Sol)

Nestled amidst a sea of banana trees on Madeira’s south coast, 1905 Zino’s Palace looks like it has stepped out of a storybook. With only nine rooms, this century-old, pink-walled gem offers an intimate setting for a romantic getaway. Guests can enjoy breakfast overlooking the ocean, a dip in the pool, or a short drive to the nearby digital nomad hub of Ponta do Sol, where you’ll find a lively scene with local restaurants and bars.

5. Best Family Hotel: Enotel Lido (Funchal)

For families looking for an all-inclusive experience, Enotel Lido in Funchal is a top choice. Parents can relax by the spa or pool while the kids enjoy daily entertainment activities like live music, shows, and competitions. With a capacity of up to eight guests per room, this hotel caters to large families. Every room offers a sea view, and the on-site restaurants are happy to prepare special meals for even the pickiest of eaters.

6. Best Luxury Hotel: The Cliff Bay (Funchal)

For travelers seeking an opulent experience, The Cliff Bay in Funchal delivers unparalleled luxury. Enjoy the comfort of extra-large beds, dine at the two-Michelin-star Il Gallo d’Oro restaurant, and take advantage of direct sea access for an afternoon dip. With three pools and a spa offering views of Funchal Bay, you’ll feel like royalty. During the summer, the hotel can even arrange diving and snorkeling sessions.

7. Best Budget Hotel: Jaca Hostel (Porto da Cruz)

Budget-conscious travelers don’t need to compromise on charm, thanks to Jaca Hostel in Porto da Cruz. Run by seasoned travelers Joaquina and Tomé, this cozy hostel feels like a home away from home, with its welcoming living room, art prints, and scattered books. Situated in a popular surf spot, the hostel offers surf lessons and equipment rentals. When you’re done catching waves, relax on the patio with a wood-fired pizza and soak in the views of the Penha d’Águia rock formation.

8. Best Hotel for Foodies: Belmond Reid’s Palace (Funchal)

For food lovers, Belmond Reid’s Palace is a haven. Since opening in 1891, it has hosted famous guests such as Winston Churchill and George Bernard Shaw. Its afternoon tea, featuring freshly baked scones, finger sandwiches, champagne, and a selection of over 20 teas, is an experience not to be missed. The on-site Michelin-starred restaurant, William, and the Italian Villa Cipriani offer diverse culinary delights. Even pets can enjoy gourmet meals prepared by the hotel’s executive chef.

9. Best Hotel for Views: Quinta do Furão (Santana)

Perched on a cliff with stunning views of the ocean and mountains, Quinta do Furão in Santana offers an unforgettable experience. It is a perfect base for hiking enthusiasts, with access to popular trails like Levada do Caldeirão Verde and Vereda do Pico do Ruivo. The rooms feature calming decor with balconies overlooking lush gardens or vineyards. Weekly activities include botanical tours, wine tastings, and even Portuguese lessons. After a day of adventure, unwind in the jacuzzi or by the fire at the pub.

10. Best Adults-Only Hotel: Hotel Porto Santa Maria (Funchal)

For a tranquil, adult-only experience, Hotel Porto Santa Maria in Funchal offers an ideal escape. Located between the waterfront and the old town, all rooms come with private balconies, many of which offer views of the sea and the historic São Tiago fort. Enjoy regular live music at the hotel bars or explore the nearby dining options. For a refreshing dip, head to the São Tiago beach or Barreirinha lido, just a short walk away.

Top Tips for Making the Most of Your Stay

1. Book Early: Madeira is becoming increasingly popular, so if you have your heart set on a particular hotel or villa, make sure to book as early as possible.
2. Choose Your Base Wisely: If you’re here for a short stay, Funchal is a great base. For nature lovers or those who want a more peaceful retreat, consider staying in the north or west of the island.
3. Rent a Car: Driving around Madeira offers unparalleled freedom. With so many stunning viewpoints, having your own transport allows you to stop and take in the sights at your own pace.
4. Plan for All Seasons: Madeira’s weather can be unpredictable, especially in the mountains. Pack layers and be prepared for changes in weather, particularly if you’re planning on hiking.
5. Don’t Miss the Food: Madeira’s cuisine is a hidden gem. Be sure to try Espada (black scabbardfish), Bolo do Caco (traditional flatbread), and of course, the island’s namesake wine!

Travelling Tips to Madeira Island 

Planning a trip to Madeira? Here are some essential tips for finding the best hostels in this beautiful Portuguese island. If you’re looking for a place to stay in the heart of the action, consider staying in central Funchal. The city offers a range of cheap hostels like Stay Inn Funchal and Residencial Funchal, ideal for solo travellers. For those seeking a more budget-friendly option, Jaca Hostel Porto da Cruz is one of the best hostels in Madeira Island for its affordable dorms and private rooms.

You can find accommodations close to popular spots like Mercado dos Lavradores and Madeira Story Center. Booking ahead is recommended, especially during peak season, and Hostelworld is a great site to compare cheap hostels. For a unique experience, try a guest house or dune beach coliving near Praia. Madeira offers stunning views, from Monte to the natural pools in Porto Moniz. Start your adventure at Cristiano Ronaldo Madeira International Airport and explore the island’s diverse landscapes!

FAQs: Best Hostels in Madeira Island 

What are the best hostels in Madeira Island for 2024?

For 2024, some of the best hostels in Madeira include 29 Madeira Hostel, which offers a vibrant atmosphere in the heart of Funchal, and Jaca Hostel Funchal, known for its friendly staff and excellent facilities. Other notable mentions are Waves Hostel and Madeira Surf Camp, both catering to adventure seekers and surfers. Each of these hostels in Madeira Island provides a unique experience, making them top picks for various types of travelers.

How much do hostels in Madeira Island cost?

The hostel prices in Madeira Island vary depending on the season and location. Typically, prices range from €15 to €40 per night for dormitory beds. Private rooms can cost between €50 and €100, depending on the amenities and location. Cheap hostels in Funchal can offer even lower rates, especially during off-peak seasons. It’s advisable to compare prices on platforms like Hostelworld to find the best deals.

Are there any hostels in Funchal?

Yes, Funchal has a variety of hostels. Some of the most popular include Stay Inn Funchal, located in central Funchal, and Santa Maria Hostel, which is situated near the old town. These hostels in Funchal provide easy access to attractions and vibrant nightlife, making them ideal for solo travellers and groups alike.

What amenities can I expect at hostels in Madeira?

Many hostels in Madeira Island offer a range of amenities such as free Wi-Fi, communal kitchens, lounges, and sometimes even swimming pools. Some also provide private rooms and dorms equipped with cable TV and en-suite bathrooms. Additionally, some hostels like Jaca Hostel Porto da Cruz may offer activities like guided tours and local experiences.

What are the best areas to stay in Madeira Island?

The best areas to stay on Madeira Island offer something for every type of traveler. Central Funchal is ideal for its easy access to attractions, restaurants, shops, and lively spots like the Mercado dos Lavradores and the beautiful botanical gardens. Just a short cable car ride away, Monte provides stunning views and unique experiences like the Monte Palace Gardens and the thrilling toboggan rides.

For a quieter, more authentic experience, Porto Moniz on the northern coast is famous for its natural lava pools and coastal scenery, while Ponta do Sol offers tranquility, picturesque landscapes, and scenic hiking trails. Each area showcases a different side of Madeira’s charm, whether you’re seeking adventure, relaxation, or a cultural escape.

Conclusion: Best Hotels in Madeira

Madeira Island is a treasure trove of stunning landscapes, cultural delights, and diverse accommodations, offering a memorable stay for every traveler. Whether you’re drawn to the bustling streets of central Funchal with its vibrant markets like Mercado dos Lavradores or seeking the calm of the southern part of the island near the scenic Monte, there’s a perfect spot for you. For those who prefer the charm of the northern coast and its natural wonders like Porto Moniz, or the idyllic sunsets in Ponta do Sol, Madeira has something for everyone.

From luxury resorts like The Cliff Bay to charming guest houses and cheap hostels such as Jaca Hostel Porto da Cruz, you can find accommodations that suit your taste and budget. Whether you’re planning a trip to Madeira for adventure, relaxation, or cultural exploration, this Portuguese island offers endless options. Make sure to check out the diverse hostel offers on Hostelworld and find your perfect base to explore all that Madeira has to offer.