Hotels to Stay in Madrid
I get it—finding the best hotels to stay in Madrid (or anywhere else) can be a real headache.
When traveling to a new destination, it’s not always easy to figure out which neighborhoods are worth staying in, which one matches your travel style, or how far the main attractions are from each other…
That’s where I come in! I lived in Madrid full-time for seven years and still return every European summer, so I know the city and its neighborhoods inside out.
Keep reading to discover my top recommendations on where to stay to make the most of your trip.
And since I know that budgets can vary greatly when choosing accommodation, I’ll be sharing both budget-friendly options and more luxurious stays.
This article contains affiliate links 🙂 They earn me a small commission on bookings, but no worries—there’s no extra cost to you. Thanks for supporting my blog, and enjoy the read!
Madrid in a nutshell
Madrid may be a capital city, but at heart, it often feels like a collection of charming villages.
Walk along Gran Vía or cross through Sol, and you’ll get the full big-city experience—crowds of Madrileños rushing to work, tourists gazing up in awe at the grand architecture, and a constant hum of energy all around.
But take a turn down a quiet side street, and suddenly, you’ll find yourself in a completely different world—peaceful, empty lanes lined with small, local shops, where life moves at a slower pace.
One of the things I love most about Madrid is how each neighborhood has its own unique character, making it easy for everyone to find the perfect place to experience the city in their own way.
I often say that Madrid isn’t a city you visit—it’s a city you live.
A trip to the Spanish capital isn’t just about ticking off landmarks and museums. It’s about soaking in the distinct atmosphere of each neighborhood and experiencing them as a true local would.
En train de planifier un voyage à Madrid ? Mes articles sur Que faire à Madrid ?, Visiter Madrid en 3 jours, ou encore 60 choses à faire à Madrid vont vous intéresser.
Hotels to Stay in Madrid
Madrid is a vast capital, even though its main attractions are located fairly close to each other.
However, if you want to take your time and discover the city from a more local perspective, I recommend choosing a neighborhood that suits you.
Each neighborhood has its own distinct personality and unique characteristics that will likely appeal to you in different ways.
To help you make the best choice, I’m sharing a selection of the best neighborhoods and my favorite hotels to stay in Madrid.
1. Centro
What I refer to as the Centro neighborhood includes Sol, Callao, Gran Vía, Plaza de España, and Templo de Debod.
Here, you’re right in the heart of the commercial action, just steps away from some of the city’s most iconic landmarks.
You’ll also be spoiled for choice when it comes to shopping and dining options, but keep in mind that, with a few exceptions, you’ll experience a less authentic side of the city.
This area is home to major clothing brands alongside fast-food chains—definitely not the most local vibe. However, it’s an interesting spot to stay if you have just one day to explore Madrid.
The constant flow of pedestrians will give you the feeling of being in a city that never stops.
Hotels in Centro
Debod Hostel ($): Located in the heart of the city, this establishment is the most affordable option. With its dormitory-style beds, it’s perfect for budget travelers, and its common areas encourage interaction among guests.
Hostal Regio ($$$): Located on a peaceful street, Hostal Regio is just a stone’s throw from Gran Vía. It offers simply decorated rooms with balconies. A public parking lot is nearby, making it ideal for travelers arriving by car.
Hotel Preciados ($$$): Nestled in a restored 19th-century building, this hotel is located in the heart of Madrid, close to popular tourist sites. It features a restaurant and a lounge where you can unwind with a cocktail. The elegantly decorated rooms, most of which come with a balcony, offer a comfortable and stylish stay.
Emperador ($$$$): This stylish hotel is located on Gran Vía. It boasts a seasonal rooftop pool and a cocktail bar with stunning views of the city. The elegant rooms feature private bathrooms with marble floors, ensuring a luxurious stay.
What to do in Centro?
- Shopping on Gran Vía: But maybe skip the fast-fashion brands 😉
- Explore Puerta del Sol: Check out the Oso y el Madroño statue and the Kilometer 0 plaque.
- Head up to El Corte Inglés at Callao: From here, you can enjoy a panoramic view of Gran Vía.
- Catch a musical: Whether it’s Aladdin or The Lion King, there’s something for everyone!
- Have a drink at the Riu Hotel terrace: Take in the 360º view of the city.
2. Malasaña
It’s in the streets of Malasaña that the movida madrileña reached its peak. Its rebellious and vibrant legacy still lingers today, even though the hipster Bohemian trend has also taken hold of the area.
Just a few steps from Gran Vía, this neighborhood is made up of charming narrow streets, colorful buildings, punk or rock bars, vintage shops, and alternative art galleries.
It’s also home to a few iconic landmarks and squares. In any case, the most rebellious and politically incorrect neighborhood in the city stays lively both day and night—though, truth be told, it’s especially vibrant after dark!
Hotels in Malasaña
Hostal Abami II ($$): Located near most of the city’s major landmarks, this establishment offers modern rooms perfect for couples. Each room comes with a private bathroom and a balcony with a view of the city.
Hostal Santo Domingo ($$): Housed in a stunning 18th-century building, this establishment combines elegance, light, and modernity. It offers rooms with a sleek, minimalist design, perfect for couples or groups of friends.
Hostal Loyola ($$): Decorated in a functional style, all rooms are bright and equipped with a desk. Several rooms feature a balcony, and some offer a private bathroom. An excellent choice for families and groups of friends.
Hostal Salome ($$$): A simple hotel with classic decor, located just near Gran Vía. It’s a perfect option for couples who want to enjoy Malasaña while staying in a peaceful setting.
What to do in Malasaña?
- Stroll through the little streets: Discover the beautiful façades and local designer boutiques.
- Have a drink on the terrace at Plaza 2 de Mayo: It’s the heart of Malasaña and a popular gathering spot for locals.
- Party in a Movida Madrileña bar: If you love alternative vibes, you’ll definitely enjoy this!
- Visit the Madrid History Museum: Learn more about the capital’s fascinating past.
- Go for a yayos drink: Casa Camacho offers a unique beverage made of vermouth, gin, and gaseosa.
ALSO READ: What to Do in Madrid?
3. Chueca
Chueca is the heart of Madrid’s LGBTQ+ community and nightlife. Its main square, Plaza de Chueca, serves as a meeting point for locals.
Here, the atmosphere is inclusive and welcoming, offering everything from trendy spots to more traditional bars.
The neighborhood is lively, with cocktail bars and clubs where the music echoes until the early hours of the morning.
Chueca is also a pleasant place to wander during the day, with its stylish boutiques and fine dining restaurants.
Hotels in Chueca
Fuencarral Rooms ($$): With comfortable bedding, clean rooms, and perfect peace and quiet, Fuencarral Rooms offers rooms with wardrobes, desks, and private bathrooms, just a stone’s throw from Gran Vía.
Hostal Prada ($$): The Hostal Prada welcomes travelers to clean and functional rooms. Some accommodations offer a city view, and all rooms feature a courtyard. This 2-star guesthouse also offers a shared lounge for guests.
Hostal San Lorenzo ($$$): Hostal San Lorenzo offers elegant and functional rooms with a cozy seating area where you can relax and read. It’s an excellent choice for couples, groups of friends, and families.
The Principal Madrid, Small Luxury Hotels ($$$$): For a luxurious stay, this establishment is the perfect choice. In addition to its elegant and spacious rooms and suites, The Principal Madrid offers a legendary view of Gran Vía from its stylish rooftop, a cocktail bar/restaurant, and a fitness center.
What to do in Chueca?
- Have a drink on Plaza de Chueca: Enjoy the vibrant atmosphere of Madrid’s terraces.
- Enjoy LGBTQ+ bars and clubs: The options are endless, from drag bingo to cocktail bars.
- Have tapas at one of El Tigre’s venues: A truly authentic atmosphere with free tapas.
- Discover the Casa de las 7 Chimeneas: Take a legendary tour of the city to learn more about this mysterious house.
ALSO READ: Best Day Trips from Madrid
4. Huertas
The Huertas neighborhood, also known as “Barrio de las Letras“, is a true gem for culture and history enthusiasts.
Once the heart of Spanish Golden Age writers, Huertas is filled with cafés and spots where art and literature meet at every corner.
This pedestrian-friendly area is perfect for a stroll, where you can discover quiet squares and shaded terraces.
It’s renowned for its traditional restaurants and bars, where you can enjoy a good vermouth in a relaxed setting.
As night falls, Huertas comes alive with its tapas bars and flamenco shows, offering an immersive experience in traditional Spanish culture.
Hotels in Huertas
Hostal Petite Maman ($$): With a comfortable bed and ample space, each room at Hostal Petite Maman features contemporary décor and wooden floors. All rooms include a private bathroom with a shower.
Hostal Alfaro ($$): This establishment offers very comfortable single and double rooms with particularly neat décor. All rooms are equipped with a private bathroom with a bathtub, and some also feature a balcony where you can watch passersby.
Hotel Mexico ($$): This establishment surprises with unique décor in some of its rooms, while others feature a more classic style. This peaceful accommodation is an excellent option for both solo travelers and couples.
Armesto Rooms ($$$): This quirky, uniquely designed hostel boasts an unbeatable location, just a few meters from Madrid’s Art Triangle. It’s an excellent choice for travelers looking to stay in a beautifully decorated establishment.
What to do in Huertas?
- Have a vermouth at one of the bars on Calle Huertas: The best way to enjoy the local nightlife.
- Attend a flamenco show: Fall under the spell of this unique art form!
- Hunt for quotes written on the ground: A distinctive feature of Huertas.
- Watch a play at the Teatro Español: An excellent way to dive into Spanish culture.
- Head to the Prado: The famous museum is just a short walk from the neighborhood.
5. Lavapies
Lavapiés is Madrid’s multicultural neighborhood, a place where cultures from around the world come together.
Located in the southern part of the city, this area is a true melting pot of nationalities, with a strong South Asian and African presence.
Here, the restaurants, markets, and shops reflect this diversity, offering unique flavors, colors, and sensory experiences.
Lavapiés is also a very lively neighborhood, with cultural events, concerts, and festivals taking place year-round.
It’s the perfect place for those seeking an authentic, local experience in Madrid.
Hotels in Lavapies
Madrid Downtown Hostel ($): This hostel is an excellent option for budget-conscious travelers who have no problem staying in a dormitory. The establishment features a lounge and a shared kitchen, making it easy to meet other travelers.
The Loft House Madrid ($): Another budget-friendly option for travelers who prefer to stay in a dormitory, this hostel stands out for its stylish, modern, and cozy design. Moreover, its prime location makes it perfect for exploring the neighborhood and all that Madrid has to offer.
Hotel Mediodia ($$$): This accommodation, ideally located between Atocha and the Reina Sofia Museum, features an elegant facade dating back to 1914. You’ll also appreciate the original stained glass windows and the grand staircase in the entrance. The simply decorated rooms are perfect for solo travelers, couples, families, or groups of friends.
Casa du Soleil Hostal Boutique ($$$): Clean, spacious, and comfortable rooms await couples after a long day of sightseeing. The minimalist decor is charming in its simplicity. The added bonus is the kitchenette, where guests can prepare their own meals.
What to do in Lavapies?
- Enjoy an Indian, Senegalese, Moroccan meal…: this is the perfect neighborhood to take your taste buds on a journey!
- Admire street art on a tour: graffiti can be found at every corner.
- Have a drink in the evening on Argumosa Street: the liveliest street in the neighborhood.
- Visit the Reina Sofia Museum: don’t miss Picasso’s Guernica!
- Take a walk through the narrow streets: get lost in these colorful alleys!
6. La Latina
La Latina is a neighborhood where traditional Madrid blends with a laid-back atmosphere.
This historic area, located south of Plaza Mayor, is famous for its picturesque alleys, sunlit squares, and tapas bars that define Madrid’s culinary scene.
La Latina takes on a whole new vibe on Sundays, with its famous flea market, El Rastro, where you can find everything from vintage clothing to handcrafted items.
It’s the perfect spot for a Sunday stroll, combining treasure hunting and culinary discoveries.
In the evening, La Latina’s lively terraces are perfect for savoring tapas while soaking in the festive vibe of the neighborhood.
Hotels in La Latina
The Hat Madrid ($): The Hat Madrid is the perfect option for budget travelers looking to stay in La Latina. The accommodation offers various dormitory options, making it ideal for those watching their spending. The highlight is its rooftop, where you can relax after a long day of sightseeing while enjoying the stunning view.
Hostal Rofer ($$): This hostel offers simple yet comfortable rooms for solo travelers and couples. All rooms are equipped with private bathrooms, ensuring added privacy and peace.
Posada del Dragón Boutique Hotel ($$$): Located on the ultimate tapas street, this hotel stands out with its ultra-modern and vibrant décor. Comfort is also a top priority, with bright rooms that can accommodate both couples and solo travelers.
Palacio Conde Miranda ($$$): For a luxury stay with family or friends, this accommodation offers modern apartments with city views. Some feature a balcony, and the fully equipped kitchen provides added convenience and peace of mind.
What to do in La Latina?
- Take a stroll through El Rastro: Madrid’s iconic flea market.
- Eat tapas on Cava Baja: the perfect street to try a variety of tapas.
- Visit the Church of San Andrés: a historic church located in the heart of the neighborhood.
- Explore the charming little streets: be ready to snap some photos.
- Visit the Basilica of San Francisco el Grande: marvel at its stunning dome!
7. Madrid de las Austrias
The Madrid de las Austrias district is a true journey through the city’s history.
Named after the Habsburg dynasty, which marked Madrid’s golden age in the 16th and 17th centuries, this area is rich in historical landmarks, majestic palaces, and iconic squares.
Must-see spots include the Plaza Mayor, the Royal Palace, and the Almudena Cathedral.
Stroll through its cobbled streets and uncover the traces left by Spain’s former kings, who shaped Madrid’s skyline.
This neighborhood is perfect for those wanting to immerse themselves in the history and grand architecture of the capital.
Hotels in Madrid de Las Austrias
La Perla Asturiana ($$): Just a few meters from Plaza Mayor, the hotel is housed in a beautiful building offering views of the historic streets surrounding it. The decor is simple and charming, featuring wooden bed frames and tiled floors. There are also family rooms available.
Hostal A Nuestra Senora de La Paloma ($$): This guesthouse offers rooms with simple decor at a great value. Some rooms also feature a city view, a private bathroom, or a balcony.
Wonder Apartments ($$$): This establishment offers apartments perfect for families or groups of friends. Each modern and simple accommodation features a balcony and a fully equipped kitchen for more freedom and convenience.
UMusic Hotel Madrid ($$$$): This hotel is very recent and boasts an impressive façade. Some accommodations include a balcony, while others offer a view of the city. The property also features a seasonal outdoor pool and a fitness center.
What to do in Madrid de Las Austrias?
- Visit the Royal Palace and its gardens: book your tour here!
- Admire the Plaza Mayor: take the opportunity to photograph it from every angle.
- Explore the Almudena Cathedral: reflect in this sublime place!
- Pass through the Plaza de la Villa: discover an incredibly beautiful area!
- Take a break in the Sabatini Gardens: take the time to stroll through this beautiful green space!
7. Salamanca
Salamanca is the chic district of Madrid, where elegance and refinement meet. As you stroll through its streets, you will discover a multitude of luxury boutiques, fine dining restaurants, and modern art galleries, perfect for high-end shopping enthusiasts.
This neighborhood is also home to must-see art museums, such as the Lázaro Galdiano Museum and the Museum of Modern Art, both well worth a visit.
With its designer boutiques, prestigious hotels, and sophisticated atmosphere, Salamanca invites you to experience a moment of luxury in the heart of Madrid.
Hotels in Salamanca
Boutique Urban Madrid Serrano ($$): Located just steps away from the prestigious Calle Serrano, this hotel offers functional and spacious rooms, perfect for those seeking both comfort and practicality. Each room is equipped with a kitchenette for added autonomy and a full bathroom for a pleasant and comfortable stay.
Dormirdcine ($$$): This accommodation in the heart of Salamanca offers unique rooms themed around cinema. Like the common areas, they are bright, modern, and decorated with murals and graffiti inspired by famous films. The establishment also houses a café and a cinema bar.
Hotel Serrano ($$$): Clean, comfortable, and well-equipped, the rooms at the Serrano Hotel await visitors after a long day of sightseeing. The decor of the entire establishment is classic but very well-maintained.
Relais & Châteaux Heritage Hotel ($$$$): Treat yourself to a dream stay in the Salamanca district at this establishment located in a 20th-century building decorated in a belle époque style. The hotel features a modern decor that blends an urban, cosmopolitan spirit with the latest technologies.
What to do in Salamanca?
- Take photos of the Puerta de Alcalá: one of the most beautiful entrances to the city.
- Go shopping on Calle de Serrano: where the top luxury brands are!
- Visit the Museo Arqueológico Nacional: an absolutely fascinating museum!
- Enjoy a delicious meal at a Michelin-starred restaurant: treat your taste buds during your stay!
Don't use Airbnb!
You’ve probably already heard about the consequences of using Airbnb in major cities like Barcelona, Mexico City, or Chiang Mai. Madrid is no exception!
Having lived for seven years in Lavapiés, I am a witness to the direct impact of gentrification on the local population.
This phenomenon, fueled by the rise of short-term rentals like Airbnb, drives up rent prices, making it impossible for many families who have lived in these popular neighborhoods for generations to afford to stay.
I myself can no longer afford to live in this neighborhood, just like many other households who are being forced to leave the heart of Madrid.
Long-term residents are being replaced by transient tourists, which profoundly changes the social fabric and cultural diversity of these areas.
The pressure on the rental market increases, making daily life difficult for those who have contributed to the identity and vitality of the neighborhoods.
By choosing to stay in a hotel, tourists can help preserve traditional neighborhoods while supporting a more sustainable economic model that is respectful of local residents.
Hotels, although more expensive, contribute to the local economy in a more balanced way, without exacerbating inequalities as Airbnb does.
If, like me, you’re traveling for several weeks or even months, it’s clearly impossible to stay in hotels. Airbnb is therefore tempting.
If you have no other choice, make sure to pay a price that reflects the market.
Also, make sure to stay in apartments where locals are renting out a room for extra income. Avoid entire Airbnb buildings at all costs.
Furthermore, in an increasingly globalized world, it is essential to support local businesses. These small businesses are the true guardians of a neighborhood’s identity.
Forget about large international chains; buying from a local artisan or dining at a neighborhood restaurant not only provides an authentic experience but also helps preserve the uniqueness of each place.
This is how we keep local culture and traditions alive, far from the standardization of globalized metropolitan cities.
I hope this selection of hotels to stay in Madrid will help you prepare for your next stay in the Spanish capital!
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