Residencial Vila Camacho in Funchal I have had many a summer holiday at this guest house as a teenager with my friend Tony Camacho, whose nan ran the guest house when we were younger.
Residencial Monte Verde in Funchal The hostal is located just off the hotel zone in a quiet resedential area. There are many buses that can get you into central Funchal or if you feel fit a thirty-minute walk. The family that run the hostal are very friendly! (especially Luis.) the rooms to our surprise were really stylish for a hostal, it was of three-star-plus standard. Very clean with a nice balcony, sat TV, bathroom. Breakfast is I suppose very european -- cold meats and cheese, and very hit and miss coffee and tea was a bit cold! Basically don't rely on breakfast -- you will need a hearty lunch or dinner! I would highly recommend staying here because it is a fraction of the cost of the hotels in the hotel zone and I am sure the service you get here and rooms can rival them. Madeira is a beautiful place -- we fell in love with it and cannot wait to go back! we will always stay here.
Residencial Funchal in Funchal Very cheap and clean hostel in the heart of Funchal. Staff very friendly and helpful. The only cons there is no kitchen, although they could place a microwave and an oven in the balcony for example. But still, cheap, clean, and safe! If I ever come back to the island, I will stay here again.
Hostelz.com is the only hostel guide with complete information and reviews on all youth hostels and backpackers worldwide.