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Best Areas to Stay in Madrid: 10 Neighborhoods You’ll Love

by Or Amir

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Wondering what are the best areas to stay in Madrid? Wonder no more. My favorite city in Spain has 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 accommodation options for every budget!).

Read more about Madrid:

 

Madrid accommodation guide: If you're wondering where to stay in Madrid Spain, here 10 of the best areas to stay in Madrid including travel information about each neighborhood.

 

* I haven’t stayed at every hotel I mention below, but each one is well-researched and has high ratings of 8+ 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.



THINGS TO NOTICE BEFORE BOOKING ACCOMMODATION 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, 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 to you, read the reviews to see if there are any complaints about noise.

 

A street in Madrid

 



 WHERE TO STAY IN MADRID IF YOU WANT TO BE IN THE HEART OF THE CITY: SOL-GRAN VIA

Probably the most famous and busiest touristy area in the city, this neighborhood is located in the heart of Madrid between Gran Via Street and 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) that represents the coat of arms of Madrid, the Insta-famous Metropolis Building, and the 18-century Royal Post Office.

 

BUDGET

Room007 Ventura Hostel: For those who don’t mind sharing a room with other travelers, this hostel offers dorm rooms with lockers and a private bathroom. The reception works 24/7, there’s an on-site restaurant, and you can also choose whether to pay for a continental breakfast. Read reviews and check prices here.

Hostal Río Paraná: Housed in a 19-century building, this guest house is located near Puerta del Sol and offers simple private rooms (for up to three people) with private bathrooms and flat-screen tv. Read reviews and check prices here.

 

MID-RANGE

Hostal Ivor: My personal experience in this guest house was very positive. My room was simple yet clean and comfortable, the staff was friendly and helpful, and the location was great. If you’re looking for basic and central accommodation, this is a good choice. Read reviews and check prices here.

Hostal Mayor: With a super central location and 24/7 reception, this guest house also gets high scores for cleanliness, comfort, and value for money. Read reviews and check prices here.

Hostal Pio: Beyond its location, this guest house offers modern rooms equipped with a flat-screen tv, a mini-bar, a safe, and an electric kettle. Read reviews and check prices here.

 

LUXURY

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 walk away from Gran Via Street. Read reviews and check prices here.

 

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best area to stay in Madrid - Gran Via

 


THE OLDEST PART OF MADRID: LOS AUSTRIAS

Located west of Sol-Gran Via, this area is filled with Madrid’s most famous historical landmarks like the Royal Palace, Plaza Mayor, 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 neighborhood. Many venues and cafes in Las Austrias also host live music shows for you to enjoy.

 

BUDGET

Hostal La Casa de La Plaza: Located near Plaza Mayor and Mercado de San Miguel, this guest house offers private rooms (for up to 4 people) with shared bathrooms. Read reviews and check prices here.

 

MID-RANGE

Hostal Met Madrid: With a super central location and basic yet clean rooms, this guest house gets 9+ scores on every aspect including comfort and value for money. Read reviews and check prices here.

Oriente Palace Apartments: Located right next to the Royal Palace, this apartment hotel offers stylish double rooms and fully equipped apartments, 24/7 reception, and optional breakfast. Read reviews and check prices here.

 

LUXURY

Pestana Plaza Mayor Madrid: This 4-star hotel offers big modern rooms, an on-site restaurant, and other facilities like a gym and two pools. Read reviews and check prices here.

 

Browse all accommodations in Los Austrias

 

Royal Palace

 


HIPSTER AND VIBRANT: MALASAÑA

Located north of Gran Via Street, Malasaña has to be one of my most favorite neighborhoods in Madrid. I was especially drawn to its hipster/bohemian and youthful vibes that can win you over in a heart bit.

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.

 

BUDGET

Hostal Abel Victoriano: This guest house offers simple rooms, 24/7 reception, and an optional breakfast at a cafe nearby. Read reviews and check prices here.

 

MID-RANGE

Hostal Maria Cristina: I had a great experience in this place. Apart from its central location right between Malasaña and Chueca, my room was spacious, super clean and comfortable, and the staff was always welcoming. Read reviews and check prices here.

Hostal Silserranos: Located near the Metro station of Tribunal, this 2-star guest house offers simple and clean rooms for up to 4 people. The reception works 24/7, and there’s a coffee vending machine for your convenience. Read reviews and check prices here.

 

LUXURY

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. Read reviews and check prices here.

 

Browse more accommodations in Malasaña

 

best location stay in Madrid - Malasana

 


FULL OF SPANISH LITERATURE HISTORY: BARRIO DE LAS LETRAS

I completely fell in love with the boasting-of-charm Barrio de las Letras (Literary Quarter). 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 a lot more. Both intriguing and central, it is a great area to stay in Madrid.

Tip: To learn more about the neighborhood’s history (not in a boring way), I highly recommend taking this INCREDIBLE free walking tour.

 

BUDGET

Hostal Carracedo: With different discounts offered on Booking.com, the prices of a double room in this guest house start at only 45 Euros. All rooms include flat-screen tv, toiletries, a closet, and a safe. Read reviews and check prices here.

Hostalin Madrid Atocha: Located right next to Anton Martin Metro station, this guest house offers simple rooms and a 24/7 reception. Read reviews and check prices here.

 

You may also like:  20 Essential Tips for Visiting Madrid Like a Total Pro

MID-RANGE

Hostal Alexis Madrid: Offering spacious equipped rooms, this highly-rated 3-star guest house is located near Plaza Santa Ana and Puerta del Sol. Read reviews and check prices here.

Hostal Royal Cruz: With a central location, clean noise-proof rooms, 24/7 reception, and continental breakfast included in the price, this 3-star guest house gets high scores on every single aspect. Read reviews and check prices here.

Hostal CerveloThis guest house offers spacious rooms for up to 4 people, 24/7 reception, and breakfast that’s already included in the price. Read reviews and check prices here.

 

LUXURY

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 also includes a breakfast buffet. Read reviews and check prices here.

 

Browse more accommodations in Barrio de las Letras

 

where to stay in Madrid - Barrio de las letras

 


BEST AREA TO STAY IN MADRID IF YOU’RE A TAPAS BAR ADDICT: LA LATINA

Located south-west of Sol-Gran Via, La Latina has it all. From medieval streets and squares to the most amazing 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.

 

MID-RANGE

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.

 

LUXURY

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.

 

Browse more accommodations in La Latina

 

best neighborhood to stay in Madrid - La Latina

 


GAY-FRIENDLY: CHUECA

Located north of Gran Via Street, Chueca is known as Madrid’s LGBT 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.

 

BUDGET

Hostal Chelo: With a central location right between Chueca and Malasaña, the guest house offers simple rooms at relatively budget-friendly prices. Read reviews and check prices here.

 

MID-RANGE

Hostal Zamora: Close the Metro stations of Chueca and Gran Via, this 2-star guest house offers clean and comfortable rooms and 24/7 reception. There are also vending machines if you want to buy some snacks or drinks. Read reviews and check prices here.

 

LUXURY

Lusso Infantas: Housed in a 19-century building, this 4-star hotel offers modern spacious rooms equipped with everything you’ll need including a smartphone with internet access you can take with you and use for free while wandering the city. There’s also an on-site bar and an optional continental breakfast. Read reviews and check prices here.

 

Browse more accommodations in Chueca

 

 


BEST NEIGHBORHOOD TO STAY IN MADRID FOR LUXURY LOVERS: SALAMANCA

Luxurious, elegant, and exclusive are a good way to describe Salamanca, the neighborhood located north of El Retiro Park. With high-end stores, Michelin-starred restaurants, and posh nightclubs and cocktail bars, you can understand the type of vibes you’ll feel in this area.

 

MID-RANGE

Avenida De America Tijcal: This apartment hotel offers fully equipped modern apartments, 24/7 reception, and a shared lounge area. Read reviews and check prices here.

Velázquez 45 by Pillow: Located in the heart of Salamanca, this 3-star guest house offers modern spacious rooms, an optional breakfast, and a shared lounge area. Read reviews and check prices here.

 

LUXURY

Hospes Puerta de Alcalá: Housed in a 19-century building, this 5-star hotel offers big elegant rooms as well as many VIP services and facilities including a spa area. It’s also located right next to El Retiro Park. Read reviews and check prices here.

 

Browse more accommodations in Salamanca

 

 

 


MULTICULTURAL AND DIFFERENT: LAVAPIES

While not nearly as glamorous as Salamanca, 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.

 

BUDGET

2060 The Newton Hostel: This hostel offers an excellent location near Tirso de Molina Metro station, 24/7 reception, and shared kitchen and lounge area. You can also choose between dorms and private rooms with a private bathroom. Read reviews and check prices here.

 

MID-RANGE

Hola Rooms: Offering stylish private rooms for up to 4 people and a central location near Tirso de Molina Metro station, this guest house gets high scores on every aspect. Read reviews and check prices here.

 

LUXURY

Artrip Hotel: Apart from standard rooms, this hotel also offers suites for those looking for something more upscale. The reception works 24/7, and you also can choose to pay for a continental breakfast. Read reviews and check prices here.

 

Browse more accommodations in Lavapies

 

best place to stay in Madrid - Lavapies

 


RETIRO

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.

 

MID-RANGE

8Rooms Madrid: Located south of the park, this guest house offers simple and clean double rooms. Read reviews and check prices here.

 

LUXURY

Claridge Madrid: This 4-star hotel offers elegant rooms, an optional breakfast, and an on-site restaurant. It’s also located right next to the Metro station of Conde de Casal. Read reviews and check prices here.

 

Browse more accommodations in Retiro

 

Retiro Park

 


BEST PLACE TO STAY IN MADRID FOR ART LOVERS: PASEO DEL ARTE

Even if you’re not an art fan, 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 at the reach of these world-famous institutions, as well as other cultural spots, choose to stay along the Paseo del Arte (located west of Retiro).

Tip: To skip the lines at all three museums, you can book a combined ticket online.

 

LUXURY

Hotel Paseo Del Arte: This 4-star hotel offers spacious modern rooms, an on-site restaurant, and an optional breakfast. Some rooms also have a balcony overlooking the city. Read reviews and check prices here.

 

Browse all accommodations in the Paseo del Arte

 

El Prado

 


OTHER AREAS TO STAY IN MADRID

You can also search for accommodation in Madrid Rio and Chamberi. They are located a bit further from the city center, but they are a lot less touristy.

 



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Madrid accommodation guide: If you're wondering where to stay in Madrid Spain, here 10 of the best areas to stay in Madrid including travel information about each neighborhood.

 

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2 comments

Em May 25, 2020 - 11:11 am

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.

Reply
Or Amir May 25, 2020 - 11:46 am

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 🙂

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