Hello Mango,
Your sentence refers to this quotation:
Mid pleasures and palaces though we may roam,
Be it ever so humble there's no place like home!
(John Payne)
The second line here implies that although one's home may be extremely rudimentary, it is nonetheless one's favourite place.
In your example, "homely" replaces "humble". Sometimes "homely" means simply "comfortable like home"; but it can also mean "plain". (It can also serve as a euphemism for "not pretty", in relation to people.) In your example, this second meaning is the intended meaning.
Best wishes,
MrP