Where to stay in Madrid – Best Areas And Hotels For 2024

If you’re planning a trip to Madrid, there are lots of things to think about and organise. After arranging flights, finding where to stay in Madrid, without doubt, is next on the list. As the capital of Spain, Madrid is a very large city that’s divided into different areas known as “barrios”. I’m sure you’re wondering what area of the city is best to book your accommodation to stay in Madrid. Each barrio has something a little different to offer visitors and it can seem a little overwhelming deciding which to choose.

This article will give you a great overview of the barrios in Madrid where holiday accommodation is concentrated. Giving you a little insight into what to expect in each area and why I would recommend you to stay there. You’ll want to be in a great location in the Spanish capital, close to the city centre or within walking distance from all major tourist attractions.

This complete guide is here to help you to choose the accommodation in the best neighborhoods which is most suitable for your needs and ensure that you have an amazing time during your visit to the Spanish capital of Madrid.

Where to stay in Madrid

How do you choose where to stay in Madrid? We break it down for you so you pick the best neighbourhoods depending on your interest, budget and preference. The 6 areas we’ll cover in this Madrid neighbourhood guide are all centrally located, close to amenities, restaurants and all tourist attractions. We do recommend that you make use of the great metro system in Madrid but note that this city is walkable, so you can enjoy a carefree holiday.

  • Puerta del Sol & Gran Via – for first visits
  • Retiro – for families and relaxed holidays
  • Malasana – hipster neighbourhood with lots going on
  • La Latina – great for history and food
  • Salamanca – for luxury and upscale shopping
  • Tetuan – ideal for football matches
  • Chueca – party vibes and great nightlife
Beautiful Madrid Spain - Where to stay in Madrid to be close to attractions and amenities

Puerta del Sol & Gran Via – Where to stay in Madrid for first-time visitors

Puerta del Sol & Gran Via is the best place to stay in Madrid if you visit for the first time. Known as “kilometre zero Puerta del Sol is not only the heart of Madrid but also considered the heart of the whole country. Puerta del sol is the bustling centre of the centre, full of department stores, retail shops and restaurants. It’s in close proximity to all the attractions you may want to visit as well as to many metro stations for your convenience. It’s easily one of the best neighbourhoods in the city.

Why stay in Puerta del Sol & Gran Via

Not only that it’s one of the central neighbourhoods in Madrid but it’s sometimes referred to as the equivalent of New York’s Times Square. It’s where everything happens. You’ll easily be able to find a modern hotel that suits your style and budget for also friendly hostels for budget travellers. Puerta del sol is just 10 minutes walk from Paseo del Prado and Prado museum as well as retiro park. You’ll be within 20 minutes walking distance from the Plaza mayor and Royal palace which means you are never too far from all important points of attraction.

Where to stay in Puerta del Sol & Gran Via

Hotel Room Mate Alba
Luxury Hotel8.8

A great luxury four-star hotel located just minutes walk from Puerta del Sol and less than 0.6 miles from Mercado San Miguel. Enjoy a modern and clean room you can come back to after a long day exploring Madrid.

Click here for prices and book Hotel Room Mate Alba

Guest house Hostal Aguilar
Mid-range Hotel 8.8

A great guest house where every room comes with en-suite bathroom. IT’s well located in the centre of Madrid so you’ll be just minutes from all the tourist attractions.

Click here for prices and book Guest house Hostal Aguilar

Hostel Ok Hostel Madrid
Budget Hotel8.8

Ok Hostel Madrid is ideally suited for budget travellers. The property features a bar and a shared kitchen. You can stay in a private room or in a shared room with 4-6 bunk beds.

Click here for prices and book Hostel Ok Hostel Madrid

Retiro district with its vast green spaces is the best area to stay in Madrid for families

Retiro – Where to stay in Madrid for families

Retiro is the place to be if you love parks and museums. It’s a fantastic place for families who want to enjoy Madrid’s relaxed atmosphere. Take a stroll in El retiro park and visit the Palacio de Cristal. Right next door there is the Real Jardin Botanico as well, so you will never be short of things to do.

Why stay in Retiro

Apart from the fact that you will be closed to Retiro Park, this neighbourhood is also famous for the “Golden Triangle”, Madrid’s three most important art museums. Sometimes this area is referred to as Madrid’s art triangle. Find the world-class Museo del Prado (Prado national museum) directly on the Paseo del Prado, while the private collection of Museo Thyssen-Bornemisza is across the street. Visit the Reina Sofía Museum located on the south end of Paseo del Prado, which is Madrid’s biggest and best repository of contemporary art.

Where to stay in Retiro

Hotel Hotel Palacio del Retiro, Autograph Collection
Luxury Hotel8.8

Hotel Palacio del Retiro, Autograph Collection is located opposite Madrid’s famous Retiro Park and 1,800 feet from the Prado Museum. Set in a listed building, this stylish hotel offers modern rooms and a stylish suite bar.

Click here for prices and book Hotel Hotel Palacio del Retiro, Autograph Collection

Hotel Petit Palace Lealtad Plaza
Mid-range Hotel 8.8

Each spacious, stylish room at Petit Palace Lealtad Plaza has contemporary décor with subtle gold, black or lilac finishes. Bathrooms have a hydromassage shower. The famous Reina Sofía and Thyssen-Bornemisza museums are within 15 minutes’ walk of the hotel.

Click here for prices and book Hotel Petit Palace Lealtad Plaza

Guest house 8Rooms Madrid
Budget Hotel8.8

Small, clean and affordable accommodation located just minutes away from the Atocha Train Station. 8Rooms Madrid offers air-conditioned rooms with private bathrooms and free Wi-Fi.

Click here for prices and book Guest house 8Rooms Madrid

Malasana in Madrid is one of the coolest districts to stay in the capital

MALASANA – The coolest neighbourhood in Madrid

Malasana is one of the older barrios of Madrid and has seen a lot of recent regeneration and one of the coolest in the city. It’s now the cool, hip area where apartments are sought after and old derelict buildings are being refurbished into very on-trend businesses and modern accommodation. You are just a short walk from the city center and within walking distance from the metro stations Noviciado and Plaza de España. Is one of the best neighborhoods to stay in Madrid if you want to be close to many tapas bars.


In Malasana you’ll find interesting shops, cafes, restaurants and tapas bars. It is the area of Madrid to go to if you’re looking for a hot new place to be. The narrow streets are awash with coloured graffiti and funky shop fronts. Think vintage clothes stores, Instagram worthy ice cream parlours and hipster small-batch coffee. If you stay in Malasana for your stay in Madrid you are within easy reach of famous sights such as Temple de Debod and Casa de Campo. You can walk to the city centre as it only takes around 22 minutes on foot.


Hotel Wellington Hotel & Spa Madrid
Luxury Hotel8.8

For luxury travellers, the Wellington Madrid is an absolute must. It features a spa and sensation showers with a hot tub as well as an outdoor swimming pool. On the 7th floor, you can enjoy a private lounge with amazing views of the city. Prices start at £170 per night.

Click here for prices and book Hotel Wellington Hotel & Spa Madrid

Hotel 7 Islas Hotel
Mid-range Hotel 8.8

This mid-range option is fantastic for couples and travellers who want a little luxury just 200 m from Madrid’s Gran Via. You will get wifi access and all elegant rooms feature marble bathrooms and comfortable beds. Rooms start at £71 per night.

Click here for prices and book Hotel 7 Islas Hotel

Guest house Woohoo Hostal Madrid
Budget Hotel8.8

This is a great hostel located right in the heart of Madrid. You can opt-in for a room with a private or shared bathroom. The guest house has a shared lounge area with a kitchen where you can prepare your own meals. Prices start from as little as £16 per person in a shared dormitory.

Click here for prices and book Guest house Woohoo Hostal Madrid

Madrid during sunset with leafy districts - one of the best places to stay

LA LATINA – Where to stay in Madrid for history and tapas

If you’re wondering where to stay in Madrid for an authentic feel, then La Latina is one of the best neighbourhoods for you. This is the area of Central Madrid most famous for its amazing tapas bars. It’s a very traditional part of the city where you can really get a feel for an authentic side of Madrid. The main street Cava Baja is lined with cute little bars that are full of delicious Spanish drinks and snacks.

La Latina’s main draws are its beautiful architecture. The tiny streets are fantastic to explore and marvel at, and on Sundays the city’s largest flea market, El Rastro.


In La Latina, you will rarely see a menu written in English but it’s the best place to stay in Madrid if you want to immerse yourself in the tapas bar culture and enjoy Madrid’s culinary delights. It’s the perfect area to mingle with the locals and enjoy the laid-back social scene. There are lovely plazas and outside terraces to sit and while away the afternoon in the sunshine. If you stay in La Latina you will be able to walk to city sights such as the Royal Palace, Plaza Mayor and Opera. It’s an amazing location just a short walk from many attractions. In the Plaza Mayor, Madrid’s main square. The Royal Palace is the official residence of the Spanish Royal family.

Where to stay in La Latina

Hotel NH Collection Madrid Palacio de Tepa
Luxury Hotel8.8

Want to stay in a 19th century restored palace? Then this is the place for you. Located just 350m away from Puerto del Sol, this incredible hotel offers spacious rooms with a modern bathroom. The hotel was built in a Neoclassical style and you can still see the remains of the historic canal system inside. Prices for one night in this 5-star hotel start at £140.

Click here for prices and book Hotel NH Collection Madrid Palacio de Tepa

Hotel Posada del Dragón Boutique
Mid-range Hotel 8.8

This boutique hotel is located in Madrid’s La Latina district, an area known for its tapas bars. It offers stylish rooms with free Wi-Fi and a flat-screen TV with satellite channels.The hotel is just 100 m from the Plaza Mayor and 200 m from La Latina Metro Station. You can walk to the San Miguel Market in just 5 minutes. Rooms start at £68 per night.

Click here for prices and book Hotel Posada del Dragón Boutique

Hostel Ok Madrid
Budget Hotel8.8

This hostel offers a mixture of private rooms as well as cheaper options for travellers on a budget who don’t mind sharing a dormitory. With prices starting at £16 per night, Ok Hostel is fantastic accommodation located right in the heart of Madrid.

Click here for prices and book Hostel Ok Madrid

Bernabeu stadium located in Tetuan in Madrid

TETUAN – Where to stay in Madrid for football matches

Tetuan is an area located north of the city that is a mix of residential properties and a booming business district. The longest avenue in Madrid, Paseo de la Castellana runs through Tetuan and many large hotels are located near here. You’ll be walking distance from the Estadio Santiago Bernabéu but note that this is not a central location and you will need access to the metro station to get to the city center.


The Real Madrid football stadium the “Bernabeu” is located in Tetuan. Around the stadium, you will find many local shops, restaurants and markets.

Hotels located in Tetuan are usually quite modern with spacious air conditioned rooms. Some well-known luxury hotels and chains will be in this area. If you stay in Tetuan you will be well connected to the Metro network and Madrid’s main train station Chamartin is also nearby.

Where to stay in Tetuan

Hotel H10 Tribeca
Luxury Hotel8.8

This is a luxury hotel in the heart of Tetuan. The H10 Tribeca offers stylish accommodation with rooms which are modern and soundproofed. The interior is chic and inviting and you will find plenty of dining options at the hotel’s restaurant, Tribeca. The prices start at just £72 per night.

Click here for prices and book Hotel H10 Tribeca

Hotel Erase un Hotel
Mid-range Hotel 8.8

This hotel is a great mid-range option for travellers interested in enjoying the sunny capital of Spain. The hotel offers modern and stylish rooms with air conditioning and wooden floors. Each room comes with an en-suite bathroom. Prices start at £44 per night.

Click here for prices and book Hotel Erase un Hotel

Hotel Infanta Mercedes
Budget Hotel8.8

This hotel offers single and double rooms which makes it perfect for solo or couple travellers looking for budget accommodation. Prices start at £40 per night and the rooms offer en-suite bathroom, free wifi and a buffet restaurant.

Click here for prices and book Hotel Infanta Mercedes

Stay in colourful Salamanca Madrid for luxury hotels and upscale shopping

SALAMANCA – Where to stay in Madrid for luxury

Do you want the best luxury hotels and some upscale shopping? Salamanca is the shopping area of Madrid where you’ll find luxury stores and designer boutiques. It’s a lovely neighbourhood that is nice to wander through even if you’re only window shopping. Salamanca is located to the northeast of the historical centre of Madrid, close to El Retiro Park.


The Salamanca barrio has a very calm and peaceful atmosphere. It is the best neighbourhood in this wonderful city if you love luxury Madrid hotels. With its wide tree-lined streets and beautiful grand architecture, it’s one of the more upscale areas of the city. Hotels located in Salamanca usually reflect the areas high-end vibe. If you stay in Salamanca you will be within easy reach of Retiro Park, the National Archaeological Museum, Madrid’s iconic bull ring and Cibeles fountain. Most hotels here will benefit from an on-site restaurant but we recommend that you take a short walk to major popular attractions and enjoy some of the many authentic restaurants in Madrid. Your hotel will be centrally located which means you are always in close proximity to vibrant nightlife before coming back to some of the city’s most modern rooms. It’s a great location to stay in Madrid.

Where to stay in Salamanca

Hotel Eurostars Las Claras
Luxury Hotel8.8

Eurostars Las Claras is in central Salamanca, just 7 minutes’ walk from the Cathedral and Plaza Mayor Square. It offers bright elegant rooms with stylish bathrooms and free wifi. Each room comes with a minibar. Prices start at £79 per night.

Click here for prices and book Hotel Eurostars Las Claras

Hotel Exe Salamanca
Mid-range Hotel 8.8

This 4 star hotel is an excellent mid-range option for any traveller to Madrid. The property is located in Salamanca next to Jesuitas Park and is just 8 minutes walk from the Plaza Mayor Square. Prices start at £70 per night.

Click here for prices and book Hotel Exe Salamanca

Hotel Gran Hotel Corona Sol
Budget Hotel8.8

This 4 star hotel located in the heart of Salamanca offers luxury accommodation for budget prices. With prices starting at £40 per night, you can see why this is a great option for any traveller who doesn’t want to compromise on quality and still get decent prices.

Click here for prices and book Hotel Gran Hotel Corona Sol

Clothes drying from a block of flats - chueca is a cool district with lots of nightlife

CHUECA – Where to stay in Madrid for nightlife

Chueca is the most LGBT friendly barrio in Madrid. The whole city is very open-minded and accepting but Chueca has embraced its label as the LGBT neighbourhood and is a constant celebration of this. It’s a fun and vibrant area packed full of delightful shops, bars and restaurants. This is by far one of the best neighbourhoods if you want to enjoy the vibrant nightlife in Madrid. You’ll find several budget hotels in the area


The streets of Chueca are adorned with rainbow flags flying proudly. Even the metro station walls are painted rainbow. There is a carefree atmosphere in this area and a generally nice vibe. One of Madrid’s best markets is in Chueca, it’s called Mercado San Anton and has wonderful food stalls. If you stay in Chueca you will be within easy reach of the city’s most famous art galleries Circulo de Bellas Artes and Prado museum. Just 20 minutes walk away is the Plaza Santa Ana located in Calle Huertas (known as Barrio de Las Letras) lined with bars and cafes with outdoor seating.

If you stay in Chueca you will be within minutes walk of the city’s most famous art galleries Circulo de Bellas Artes and Prado museum.

Where to stay in Chueca

Hotel Only YOU Boutique Hotel Madrid
Luxury Hotel8.8

This awesome 4 star boutique is set in a restored palace from the 19th century. It has a modern interior design with Colonial details and beautifully decorated rooms. Soundproofed rooms include a 42-inch Smart TV, iPhone/iPod and MP3 dock, electronic safe and a well-equipped minibar. Bed duvets are made of goose feathers, cotton and silk. Bathrobes, slippers and luxury toiletries can be found in each bathroom. Prices start at £150 per night.

Click here for prices and book Hotel Only YOU Boutique Hotel Madrid

Hotel Boutique H10 Villa de la Reina
Mid-range Hotel 8.8

Perfect for mid-range budgets, Boutique Hotel H10 Villa de la Reina offers you a free glass of cava on arrival, free wifi and stylish rooms. The Villa de la Reina’s restaurant offers Mediterranean cuisine, including a tapas menu. The hotel also has a bar and a computer corner, with free internet access. Prices start at £93 per night.

Click here for prices and book Hotel Boutique H10 Villa de la Reina

Hostel Bastardo Hostel
Budget Hotel8.8

Bastardo Hostel offers stylish private and dormitory rooms with free WiFi near all the main tourist attractions. For dormitory rooms, bed linen are included and towels are available for a surcharge. Private rooms feature a private bathroom, and include bed linen, towels, and free toiletries.

Click here for prices and book Hostel Bastardo Hostel

Madrid looking beautiful from above at sunset

Where should I stay in Madrid for sightseeing?

The best place to stay in Madrid for sightseeing is Puerta del Sol & Gran Via as you are just minutes away from all major attractions, restaurants and shops.

What should I avoid in Madrid?

Avoid eating right next to major attractions like Plaza Mayor and keep all your belongings nearby. You will want to schedule your meals accordingly as there is a siesta time in Spain. Madrid is safe at night but keep vigilant especially if you are a solo female traveller.

What is the nicest neighborhood in Madrid?

The nicest neighbourhood in Madrid is Retiro, and it’s also one of the safest and best neighborhoods in the capital. Salamanca is also incredibly nice known for its upscale hostels and shops.

Madrid Spain looking stunning during sunset

Where can I stay in Madrid without a car?

Locate yourself right in the centre of it all, in Sol-Gran Vía. Generally speaking, you don’t need a car to visit Madrid as there is sound public transport available in the Spanish capital. Many tourist attractions are walking distance away from main hotels as well.

Madrid is a walkable city and you can enjoy many parks and plazas in the cities. Main boulevards have wide sidewalks. Tourists love Madrid for this.

What should I do on my first day in Madrid?

On your first day in Madrid you should walk around the Centro, sit down and eat traditional tapas and grab a coffee, sit down and people watch. If you still have energy, visit the Retiro park and museum and add a few more tapas restaurants to the list.

Is Centro Madrid safe?

Yes, Madrid Centro is safe and Madrid, in general, is very safe to visit. Most visits are trouble-free and apart from pickpockets which are normal in large cities, you should not have any issues. As always, we recommend getting travel insurance just to be on the safe side, always. Madrid is safe at night also and you will very likely see many people go for dinner late at night. If you are the only person on the street, take a turn for the main boulevards to find more people around.

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Cory from You Could Travel entering Senso-ji in Tokyo, Japan

Cory Varga – Cory is a published travel writer and award-winning photographer. She travels full time with her husband and is passionate about creating in-depth travel guides. Cory published her first book on Japanese customs and manners because she’s obsessed with everything Japan. She has visited hundreds of destinations and has lived in 7 different countries. Cory is multilingual and an alumna from The University of Manchester.


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