Travelers are voting Residencial Zarco as the best hostel near Funchal. You can find 2 hostels in Madeira and 157 hostels in the country of Portugal. Our members favorite in Madeira is Residencial Zarco and Alfeizerao - Sao Martinho do Porto Youth Hostel is the top pick in Portugal. Want more? Check out our map of hostels near Funchal.