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Top Madeira Island 2 Star hotels

Residencial Funchal

Residencial Funchal

2 out of 5
Rua do Hospital Velho 19A Funchal
Fully refundableReserve now, pay when you stay
$87 nightly
The price is $95 total per night from Jun 9 to Jun 10
$95 total
Jun 9 - Jun 10
Total with taxes and fees
A rooftop terrace is featured at this hotel, along with free WiFi in public areas and dry cleaning. Luggage storage, laundry facilities, and concierge services ...
7.2/10 Good! (189 reviews)
"Very inexpensive and good location, but very basic"

Reviewed on Jun 7, 2026

Opens in a new windowResidencial Funchal
Zarco Suites by Sé Funchal

Zarco Suites by Sé Funchal

2 out of 5
R. João Tavira 3 Funchal Madeira
Fully refundableReserve now, pay when you stay
$107 nightly
The price is $115 total per night from Jun 9 to Jun 10
$115 total
Jun 9 - Jun 10
Total with taxes and fees
A rooftop terrace is featured at this guesthouse, along with a virtual front desk.
8/10 Very Good! (3 reviews)
"Was clean and in a perfect location. Staff were so helpful would recommend !"

Reviewed on Jun 5, 2026

Opens in a new windowZarco Suites by Sé Funchal
Zarco B&B - Bed and Breakfast

Zarco B&B - Bed and Breakfast

2 out of 5
Rua da Alfândega, 113 Funchal Madeira Region
A terrace, WiFi in public areas, and a computer station are available at this bed & breakfast. There's a safe deposit box and multilingual staff can provide ...
8.8/10 Excellent! (44 reviews)
"We chose this property for it's location and it was perfect for being in the heart of the old city and close to what we wanted to do / see for our short stay in Funchal. We arrived on a late flight and reached the hotel about 1am (took the Aerobus for 5e it worked great). The man at the hotel reception ..."

Reviewed on Sep 29, 2023

Opens in a new windowZarco B&B - Bed and Breakfast
Lazareto 148 Hostel

Lazareto 148 Hostel

2 out of 5
R. do Lazareto 148 Funchal Madeira
This hostel doesn't skimp on freebies - guests receive free WiFi and free self parking. A terrace, a garden, and a communal living room are also on offer.
Opens in a new windowLazareto 148 Hostel
Hotel Salgueiro

Hotel Salgueiro

2 out of 5
Lugar do Tenente nº 34 Porto Moniz
$199 nightly
The price is $207 total per night from Jun 9 to Jun 10
$207 total
Jun 9 - Jun 10
Total with taxes and fees
A restaurant and a bar/lounge are featured at this hotel. WiFi in public areas is free. Self parking, a terrace, and a snack bar/deli are also offered.
8.2/10 Very Good! (61 reviews)
"It was really cute, we arrived too late for the hot tub. The lady that checked us in was wonderful and very helpful. Right across the street from the pools. Lady I. The morning was not as friendly but okay. We would stay again."

Reviewed on May 27, 2026

Opens in a new windowHotel Salgueiro
São Lourenço Guest House

São Lourenço Guest House

2 out of 5
Estr. de São Lourenço Machico Madeira
An outdoor pool is featured at this guesthouse, along with free WiFi in public areas and a terrace. A garden, express check-in, and express check-out are also ...
Opens in a new windowSão Lourenço Guest House
Jaca - Hostel

Jaca - Hostel

2 out of 5
R. Dr. João Abel de Freitas Machico Madeira
$111 nightly
The price is $120 total per night from Jul 1 to Jul 2
$120 total
Jul 1 - Jul 2
Total with taxes and fees
This hostel features a restaurant and 2 beach bars. Enjoy the a rooftop terrace and perks like free WiFi. A terrace, a garden, and luggage storage are also on ...
9.4/10 Exceptional! (16 reviews)
"As an 18 year old girl on her first solo trip, I was scared, but the guests and the staff at the hostel were all so lovely and there was so much to do I didn't have time to worry!! I had an amzing time at the hostel."

Reviewed on Feb 20, 2026

Opens in a new windowJaca - Hostel
Funchal Bay View Villa by Homie

Funchal Bay View Villa by Homie

2 out of 5
Funchal Madeira Region
This villa doesn't skimp on freebies - guests receive free WiFi and free self parking. A garden and barbecue grills are also provided.
Opens in a new windowFunchal Bay View Villa by Homie
Cais da Oliveira

Cais da Oliveira

2.5 out of 5
Caminho Cais Da Oliveira Santa Cruz Madeira Region
A full-service spa, an outdoor pool, and a restaurant are all featured at this all-inclusive hotel. Families will appreciate in-room childcare, along with scuba ...
8.2/10 Very Good! (21 reviews)
"It was good"

Reviewed on Jan 26, 2026

Opens in a new windowCais da Oliveira
Gardens Guest House-hostel

Gardens Guest House-hostel

2 out of 5
Estrada da Furna Nº23 São Vicente Madeira Region
$108 nightly
The price is $112 total per night from Jun 22 to Jun 23
$112 total
Jun 22 - Jun 23
Total with taxes and fees
This bed & breakfast doesn't skimp on freebies - guests receive free WiFi and free self parking. Free parking, a terrace, and a garden are also offered.
9.4/10 Exceptional! (18 reviews)
"This was one of the cleanest and nicest hostels I’ve been to! It is an amazing location, and the street parking was super easy. The property was beautiful on the outside. The room was a little bit dated, and the bed was super squeaky, but I can’t complain too much. The kitchen was very nice, and ..."

Reviewed on May 21, 2026

Opens in a new windowGardens Guest House-hostel
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Lowest nightly price found within the past 24 hours based on a 1 night stay for 2 adults. Prices and availability subject to change. Additional terms may apply.

2 Star Hotels Madeira Island

Looking to break out of your routine for some much needed rest and relaxation? Or maybe you’ve already decided it’s time for a trip and are trying to find affordable hotels in Madeira Island that won’t bust your travel budget?

Madeira Island 2 star hotels will give you everything you need to enjoy the city like a local, saving a ton of money so you can hit all the hot spots in town.

Have a delicious breakfast at your hotel to fuel up for your day of sightseeing, then enjoy amenities like fresh towels and linens, as well as a nice hot shower to unwind after a busy day of experiencing everything the city has to offer.

As you explore a new locale, or one you love to visit over and over, you can rest easy knowing you’re staying in a great hotel that lets you discover Madeira Island and welcomes you back to a clean, comfortable room at night.

Browse Travelocity’s wide selection of 2 star hotels in Madeira Island and find one that’s perfectly priced and places you next to all the best activities and sights. The town is your oyster, and we can help you seek out its secrets while sticking to your budget.

Recent Madeira Island hotel reviews by fellow wanderers

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