A trip to Spain would not be complete without a visit to its incredible capital city, Madrid. When choosing accommodation in this large and bustling city, you may feel overwhelmed by the wide range of accommodation options and different areas of the city. In this post I tell you where to stay in Madrid with recommendations for the best areas and hotels.
In this post you will find:
What is the best area to stay in Madrid?
The best area to stay in the city will depend a lot on the type of trip you are doing. If you are visiting Madrid for tourism, it is best to stay in the center of the city, in areas such as Puerta del Sol, Gran Vía, Los Austrias, El Retiro, etc. There are also areas a little further from the center but very well connected by the Madrid metro network that will allow you to save some money. I am going to detail the characteristics of each area so that you can decide where to stay in Madrid according to your interests and priorities.
Where to stay in Madrid: best areas and hotels
If your idea is to go to Madrid for sightseeing and you only stay for a few days, this is the best area to stay since you will be close to the main attractions of the city. Puerta del Sol is the most central area of Madrid and Gran Vía is the most popular avenue in the city, full of shops, theatres and restaurants. Both areas are very well connected with the rest of the city and are constantly full of people and movement.
Recommended accommodation in Puerta del Sol and Gran Vía:
$ – Hostal Castilla II Puerta del Sol: I stayed at this hotel the first time I visited Madrid and I completely recommend it. The rooms are large, clean and the price is really low considering the excellent location. Click here to see photos, availability and prices.
$$ – Iberostar Las Letras Gran Via: a medium quality hotel located in Gran Vía. It has swimming pool so it’s perfect if you’re traveling during summer. Click here to see photos, availability and prices.
2. Los Austrias
Madrid de los Austrias, also known as the Barrio de los Austrias, is one of the best areas to stay in Madrid. It is the oldest neighborhood in the city so it has a lot of history and monuments to see. It is also a good place to go to eat as there are many restaurants in the area.
Recommended accommodation in los Austrias:
$$$ – Palacio de los Duques Gran Meliá: 5 star hotel located inside a historic palace. It obviously has all the commodities you need and is located just 300 metres from Plaza Real. Click here to see photos, availability and prices.
3. El Retiro
The Retiro Park is one of the most popular attractions in Madrid. This area is one of the quietest to stay in Madrid and at the same time be in the center and close to everything. This area is also home to the Prado Museum, another of the city’s popular attractions.
Recommended accommodation in El Retiro:
$$ – Petit Palace Savoy Alfonso XII: boutique hotel located really close to the Puerta de Alcalá. Rooms are well equipped and they offer a buffet breakfast. Click here to see photos, availability and prices.
$$ – Hotel Palacio del Retiro, Autograph Collection: 4 star hotel located just in front of El Retiro park in a protected building. It has sauna and gym. Click here to see photos, availability and prices.
$$$ – Mandarin Oriental Ritz Madrid: Undoubtedly one of the most luxurious and exclusive hotels you can stay in Madrid. It is located in an antique Belle Époque palace and offers a luxury experience. Click here to see photos, availability and prices.
4. Huertas or Barrio de las letras
The Huertas neighbourhood is one of the oldest in the city. It is known for being the neighbourhood where great writers such as Cervantes lived. It is a very picturesque and good area to stay since it is very central and well connected with all of Madrid.
Recommended accommodation in Huertas:
$$$ – Gran Hotel Inglés: 5 star hotel located in a protected building from the 19th century. The design is really great and it’s located just 300 meters away from Puerta del Sol. Click here to see photos, availability and prices.
Lavapiés is one of the most multicultural neighbourhoods in Madrid. It is a good area to stay in Madrid if you are looking for cheaper prices without going too far from the center. It is also an area close to the Atocha Station, so if you have to take an early train, this might be a good area to sleep in Madrid
Recommended accommodation in Lavapiés:
$ – Ibis Budget Madrid Centro Lavapiés: a classi ibis budget with small basic rooms. It is probably one of the cheapest hotels you’ll find in Madrid. Click here to see photos, availability and prices.
$$ – Hard Rock Hotel Madrid: I stayed in this hotel and totally loved it. The rooms are modern, with all the Hard Rock style. It is located just 200 meters away from Reina Sofia museum and about a 10-minutes walk from Atocha station. Click here to see photos, availability and prices.
Salamanca is known for being the neighbourhood of the aristocracy. There you will find luxury shops, art galleries and restaurants. It is a quiet area to stay in Madrid because it is more residential, although hotels in this area are usually quite expensive.
Recommended accommodation in Salamanca:
The Chueca area in the Justicia neighbourhood is known for being a party area in Madrid. It is also the neighbourhood of the gay community. It is a very trendy area full of bars and restaurants and located very close to Sol. So you will be well located to explore the city and enjoy the nightlife.
Recommended accommodation in Chueca:
$ – room007 Chueca Hostel: if you’re looking for really cheap accommodation this hostel is the best option. For just around 20€ you can sleep in a shared room. Click here to see photos, availability and prices.
8. La Latina
La Latina is a very picturesque area of Madrid, known for its tapas bars and the famous El Rastro flea market. It is an area with a lot of life at all times and well connected with the rest of the city. It is also one of the areas where you will find cheap accommodation.
Recommended accommodation in La Latina:
The alternative neighborhood of Madrid. With a lot of nightlife, ideal for partying and tapas. In this area you will find cheap accommodation and you will be very close to the center of Madrid.
Recommended accommodation in Malasaña:
$$ – Dear Hotel Madrid: located just steps from Plaza España, this hotel has modern rooms and a rooftop bar and terrace with spectacular views of Madrid at a really reasonable price. Click here to see photos, availability and prices.
Chamberí is a neighborhood a little further from the center of Madrid but I still want to include it in the list because it is an option for those who want to stay in a quieter area. It is a mainly residential neighbourhood, well connected to the center.
Recommended accommodation in Chamberí:
Other useful posts about Spain:
- Where to stay in Barcelona
- What to see in Barcelona in 3 days
- Visiting La Pedrera by Gaudí
- Tips for planning your first trip to Europe
Disclaimer: This post contains affiliate links. That means, if you click on certain links within this post and make a purchase, I earn a small commission at no extra cost to you. Read more about it here.