Wondering what are the best areas to stay in Madrid? Wonder no more. After spending several months (in total) in Madrid while staying in different places around it, I know I can help you.
Trust me when I say that my favorite city in Spain has got you covered with several central neighborhoods I know you’ll love (seriously, just talking about it makes me want to book a flight).
Plus, it’s incredibly easy to get around, so you can also find accommodation in quieter areas and use the Metro. So without further ado, here’s my guide to the best neighborhoods to stay in Madrid (including highly-rated accommodation options for every budget!).
*I try to keep the information on this blog as updated as possible, but I still recommend consulting the latest prices, opening hours, and other details on the official website of each site, hotel, and tour, as well as checking the updated public transport routes and timetables. I share my personal experience and cannot guarantee yours.
*This post may contain affiliate links from which I earn a commission. As an Amazon Associate, I earn from qualifying purchases. For more info, read my disclosure and disclaimer. This post may show pop-ups.
Things to Notice When Choosing Where to Stay in Madrid
Elevator: Many guesthouses and hostels in Madrid are housed in residential buildings that don’t have elevators. If having an elevator is important to you, be sure to include that in your search filters.
Breakfast: Many accommodations do offer breakfast, but I personally don’t think it’s necessary. There are so many amazing cafes in Madrid to have breakfast or brunch (or even just coffee and a pastry), and to me, that’s a big part of getting to know a city.
Location vs noise: Madrid is a city that never sleeps, and a lot of central streets can get quite noisy at night, so consider that when booking your accommodation. If that’s a deal-breaker for you, read the reviews to see if there are any comments about noise.
Air conditioning/heating: Depending on when you’re visiting, be sure to look for accommodations with air conditioning and heating (not all of them have those).
Parking: There’s no reason to rent a car while you’re staying in Madrid. The center is big, but there are Metro stations everywhere, and with a walkable itinerary and comfortable sneakers you’ll be good to go.
Good to know: The word ‘hostal’ usually refers to a guesthouse and not necessarily the dorm-room backpacker’s hostel that might come to mind.
Tip: If you have an early flight to catch, you can also find hotels and hostels near Madrid’s airport.
Best Areas to Stay in Madrid: Quick Recommendations
Good to know: Almost all the neighborhoods I mention in this post are a part of Madrid’s city center are packed with cafes, restaurants, bars, and shops. Each one is relatively small, so all of them have a great central location.
To make it a bit easier for you before you dive into this massive post, here’s my quick Madrid accommodation guide (keep reading to discover a few more optional locations to stay):
1. Sol-Gran Via: The heart of the city center, located within a walkable reach of other areas.
2. Los Austrias: The oldest part of Madrid, where the Royal Palace is sitauted.
3. Barrio de las Letras The literary quarter, which is also central but has a unique, authentic charm (it’s my favorite neighborhood!).
4. Malasaña: A combo of hipster and bohemian, modern, and great for nightlife.
5. La Latina: Ideal for old-town charm and tapas bar addicts.
6. Chueca: Best LGBTQIA-friendly neighborhood.
This map will show you the location of the different districts.
The Heart of the City Center: Sol-Gran Via
Overview
Probably the most famous and busiest tourist area in the city, this neighborhood is located in the heart of Madrid between the avenue of Gran Via and the square of Puerta del Sol (and its surrounding streets).
Apart from the countless shops and restaurants, you’ll find the iconic statue of El Oso y el Madroño (The Bear and the Strawberry Tree) representing the coat of arms of Madrid, the Insta-famous Metropolis Building, and the 18th-century Royal Post Office.
I also highly recommend exploring the Gran Via in the evening as it lights up and becomes even more lively.
Highly-Rated Accommodations in Sol-Gran Via
Onefam Sungate: Situated right between Puerta del Sol and Gran Via, this hostel offers double, triple, and 4-bed dorm rooms with a shared bathroom, kitchen, and lounge. It plans activities you can join, reception is open 24/7, and services like laundry and lockers are also available.
Hostal Royal Cruz: This 3-star guesthouse offers cozy double rooms, a 24-hour front desk, and a shared lounge for you to enjoy. It’s located centrally right between Sol-Gran Via and the neighborhood of Barrio de las Letras.
Woohoo Rooms Boutique Sol: Located only a stone’s throw away from Puerta del Sol, this hotel offers modern rooms and suites for up to 4 people (some of them also have a balcony). Although it doesn’t offer breakfast, you’ll find plenty of cafes and restaurants in the area.
Preciados: Housed in a restored 19th-century building, this 4-star hotel offers modern and spacious rooms, optional breakfast and dinner, an on-site restaurant, and many other services. It’s also located only a minute away from Gran Via Street.
The Oldest Part of Madrid: Los Austrias
Overview
Located west of Sol-Gran Via, this central neighborhood is home to some of Madrid’s most famous historical landmarks like the Royal Palace, Plaza Mayor (one of the prettiest European squares), and the Almudena Cathedral.
Another famous place to visit is the indoor food market, Mercado de San Miguel, but there are plenty of other places to eat and drink in the area. Many venues and cafes in Las Austrias also host live music shows for you to enjoy.
Highly-Rated Accommodations in Los Austrias
The Hat Madrid: Located near Plaza Mayor right between Los Austrias and the neighborhood of La Latina, this hostel offers dorm rooms for 4-10 people with either a shared or a private bathroom. You’ll find an on-site rooftop bar, the reception desk works 24/7, and an optional breakfast is also available.
Hostal Met Madrid: With a super central location and simple yet clean and cozy rooms, this guest house gets 9+ scores on every aspect including comfort and value for money.
Oriente Palace Apartments: Located right next to the Royal Palace, this apartment hotel offers stylish palace-like double rooms and fully equipped apartments, 24/7 reception, and optional breakfast.
Hostal Central Palace Madrid: This accommodation offers cozy single and double rooms, a 24/7 reception, and a perfection location in Plaza de Oriente overlooking the Royal Palace (though only some rooms have a palace view).
Full of Spanish Literature History: Barrio de Las Letras (My Favorite Area)
Overview
I completely fell in love with the boasting-of-charm Barrio de las Letras (Literary Quarter). It’s a located near Sol-Gran Via, but it has a more authentic vibe.
With its typical (and beautiful) Madridian streets, traditional taverns, and rich cultural history, I was hooked from the very first second.
Spain’s finest writers and artists like Cervantes and Lope de Vega found a home in this neighborhood, and their influence is still very present today.
You’ll see Cervantes’ house and grave, the statue of Federico García Lorca, old theatres, literary quotes written on the ground, and so much more. Both intriguing and central, it is definitely one of the best places to stay in Madrid (my personal favorite).
Tip: To learn more about the neighborhood’s history (not in a boring way), I highly recommend taking this INCREDIBLE free walking tour (currently not available in English – see this similar tour).
Highly-Rated Accommodations in Barrio De Las Letras
Catalonia Las Cortes: Housed in an 18th-century building, this 4-star hotel offers spacious double rooms and suites, a 24/7 reception desk, an on-site restaurant, a highly-rated breakfast, and even free snacks in the afternoon, amongst other services and amenities.
CoolRooms Atocha: Offering big elegant rooms and suites, this 4-star hotel also has two on-site restaurants and a courtyard with a small pool. The price can also include a breakfast buffet.
Old-town Vibes and Tapas Bars: La Latina
Overview
Located southwest of Sol-Gran Via, La Latina has it all. From medieval streets and squares to Madrid’s best tapas bars to El Rastro flea market to throbbing nightlife, you will never be bored here.
La Latina is also home to some of Madrid’s oldest churches and several museums. Its old-town magic and its liveliness create a unique atmosphere you won’t find anywhere else.
Highly-Rated Accommodations in La Latina
Ganivet: This 3-star hotel is located next to Puerta de Toledo Metro station and offers spacious rooms, 24/7 reception, and an optional breakfast served at the on-site cafe/bar. Read reviews and check prices here.
Posada del León de Oro: Located near Plaza Mayor, this 4-star boutique hotel offers both standard double rooms and suites, an optional breakfast buffet, and an on-site restaurant. Read reviews and check prices here.
Boho-Hipster and Vibrant: Malasaña
Overview
Located north of Gran Via Street, Malasaña has to be one of my favorite neighborhoods in Madrid. I’m especially drawn to its hipster/bohemian and youthful vibes that can win you over in a heartbeat.
From the abundance of trendy cafes and traditional tapas bars to art galleries and concept shops to colorful street art and a lively nightlife scene, anyone can find something to love about Malasaña. If you’re planning a European girls’ trip, this could be a great area to stay.
Highly-Rated Accommodations in Malasaña
Tribu Malasaña: This is a stylish aparthotel offering spacious double and family rooms equipped with a small kitchen. Staff is available 24/7, and the location is ideal.
Morar Apartments Malasaña: Suitable for 4-6 people, here you have super spacious fully-equipped apartments in the heart of the neighborhood.
7 Islas Hotel: This modern 4-star boutique hotel offers standard, deluxe, and penthouse double rooms. There’s also an on-site bar and an optional breakfast.
for Art Lovers: Paseo Del Arte
Even if you’re not an art fan, I think a trip to Madrid has to include at least one of its three major art museums – the Prado Museum, the Thyssen-Bornemisza National Museum, and the Reina Sofia Museum.
If you want to be within the reach of these world-famous institutions, known as the Golden Triangle of Art, as well as other cultural spots, choose to stay along the Paseo del Arte (located west of Retiro Park).
You can visit these museums for free at certain times (consult them on my roundup of free museums in Madrid), but then they can be even more crowded.
Highly-Rated Accommodations in Paseo del Arte
Radisson Blu Hotel, Madrid Prado: Located a stone’s throw from the Prado Museum, this 4-star hotel offers double rooms and suites, an on-site Spanish restaurant, and even a spa.
Lgbtqia-Friendly: Chueca
Overview
Located north of Gran Via Street, Chueca is known as Madrid’s LGBTQIA neighborhood. With a buzzing nightlife scene, modern cafes and restaurants, and plenty of shops, this area is full of life 24/7.
In Chueca, you’ll also find the incredible indoor food market Mercado San Anton and the Museum of Romanticism.
Highly-Rated Accommodations in Chueca
Bastardo Hostel: Though it also offers mid-range double rooms, this colorful modern hostel has dorms and affordable private rooms for up to 6 people.
Woohoo Rooms Chueca: This guesthouse offers both double rooms and family rooms for four people and has a fantastic location in Chueca near Gran Via.
MORE LUXURIOUS: Salamanca
Overview
If you’re a luxury traveler (or not), you’ll love the elegant and exclusive Salamanca, the neighborhood located north of El Retiro Park.
With high-end stores, Michelin-starred restaurants, posh nightclubs, and cocktail bars, you can understand the type of vibes of this area.
Highly-Rated Accommodations in Salamanca
Hotel Fenix Gran Meliá: This 5-star hotel offers services and amenities you’d expect from a luxury accommodation, from elegant rooms to on-site restaurants, fitness center, and a spa.
VP Madroño: Located in northern Salamanca, slightly further from the center but near a Metro station, this 3-star hotel has modern and spacious double, triple, and family rooms with kitchenettes, as well as an on-site restaurant.
Stay Near Madrid’s Famous Park: Retiro
Overview
The iconic and beloved El Retiro Park covers most of the area of this neighborhood, so this is the place to stay if you want easy and quick access to it.
Highly-Rated Accommodations in Retiro
Only YOU Hotel Atocha: Housed in a 19th-century building, this 4-star hotel offers spacious double rooms and suites, a highly-rated breakfast, a rooftop restaurant, and plenty of other services and amenities.
Close to the Center but a Little Less Touristy: Moncloa-Argüelles
Overview
Located north of the Royal Palace and west of Malasaña (on the map, it’s marked as Princesam but I’m only referring the area near Oeste Park), this small neighborhood is close to the city center, yet it’s less touristy.
It is home to some of Madrid’s best landmarks such as Plaza de España, Debod Temple, and Oeste Park, and you’ll also find plenty of cafes and restaurants here.
Highly-Rated Accommodations in Moncloa-Argüelles
Apartosuites Jardines de Sabatini: Located right next to the Royal Palace, this apartment hotel offers fully equipped and spacious studios and suites, 24/7 reception, and a highly-rated breakfast.
Plaza de España Skyline: This apartment hotel has a wonderful location near the Debod Temple and the Royal Palace’s Sabatini Gardens, and it offers fully equipped spacious and modern suite-style apartments for 2-4 people.
Other Options
These areas are not my first choices, but if you have other travel preferences, these might be for you.
Multicultural and Different: Lavapies
Lavapies is another unique area in Madrid. Located south of Sol-Gran Via and Barrio de las Letras, it has always been the home of the lower classes, and it’s considered a multicultural neighborhood.
In Lavapies, you’ll find cultural spaces and theatres, an international culinary scene, and examples of traditional Madridian residential buildings called corralas. You can stay at Artrip Hotel or Casa du Soleil Hostal Boutique.
Lively and a Little Less Central and Touristy: Chamberi
Located north of Malasaña, Chamberi is a lively and a lot less touristy neighborhood in Madrid.
It’s also less central, but you can get to the area of Sol in no time, and you’ll find plenty of places to eat here and some cool museums like Anden 0 and the Sorolla Museum. Browse accommodations in Chamberi here.
* I haven’t stayed at every hotel I mention in this post (because I also stayed in many Airbnbs in different neighborhoods in Madrid), but each one is well-researched (by me) and has high ratings of 8.5+ on Booking.com. That said, you should always read the reviews and all the details about the facilities and services to see if they match your needs.
Other Madrid Travel Guides
Did you find my Madrid hotel guide useful? Read more:
- 4-day Madrid itinerary
- 2-day Madrid itinerary
- Non touristy things to do in Madrid
- Tips for visiting Madrid like a Pro
- Breakfast and brunch in Madrid
- What to pack for Madrid
- Interesting facts about Madrid
- Reasons to visit Madrid
- Things to do in Alcala de Henares, a day trip from Madrid
Read more about Spain:
- Famous Spanish landmarks
- Long weekend breaks in Spain
- Hidden gems in Spain
- Spain travel tips
- Spain travel quotes
- Best road trips in Spain
- Novels about Spain
- Spain themed gifts
Other related posts:
I just came across this a few months after returning from my trip and just wanted to say thank you for helping me decide on Barrio de las Letras several months ago! It was absolutely perfect, location-wise, and had the exact ambiance I was looking for. I also loved how easy it was to explore its surrounding neighborhoods, and of course, the close proximity to el Retiro and various museums. In general, I kept referencing your blog when planning my trip, so thank you again! I fell in love with Madrid and cannot wait to return.
This means so much to me (I literally have tears in my eyes right now), so thank you for your sweet words! I’m so happy you love Madrid as much as I do, and I agree that it doesn’t get much better than Barrio de las Letras which is totally magical 🙂