Where to stay in Madrid: Best neighborhoods
Let’s take a look at the best areas to stay in Madrid. Below, we’ll go over what each neighborhood is like, and I’ll recommend hotels in each of them.
1. Malasaña, one of the best neighborhood to stay in Madrid
Malasaña is one of the most alternative and fashionable neighborhoods in the city. It was the epicenter of the Movida Madrileña, a social artistic movement that emerged in the early years of the Transition. Today, in its streets, you can breathe a very modern and youthful vibe.
In Malasaña, you will find numerous hipster cafes, vintage stores, art galleries, and terraces where you can have a drink. One of its busiest corners is the Plaza del Dos de Mayo, where you can find numerous bars and stalls on weekends.
Malasaña is located north of the Gran Vía, with Fuencarral Street to the east, Carranza Street to the north, and San Bernardo Street to the west. If you want to stay in a place that is lively at any time of the day, is central, and has a wide gastronomic offer, Malasaña is your place!
Whether you stay in Malasaña or not, it is an essential neighborhood in the city. Despite not having so many tourist attractions, strolling through its cobblestone streets while discovering its urban art and locals each more unique and original is a must.
Recommended hotels in Malasaña
Here are some hotels in Malasaña for different budgets:
- $: Woohoo Hostel Madrid. A 2-star hostel located just a short walk from Gran Via. The hostel offers both private and shared rooms, as well as common areas like a lounge and kitchen, making it a great choice for budget travelers who want to stay close to the action.
- $$: Bloom Inn Madrid. A comfortable option that offers all the essential amenities for a pleasant stay. Guests can choose from single or double rooms, making it ideal for solo travelers or couples looking for an affordable yet convenient lodging option.
- $$$: Akeah Hotel Gran Vía Adults Only. This 3-star hotel on San Bernardo Street is perfect for adults seeking a more upscale experience. With easy access to the metro, the hotel features a bar, restaurant, and swimming pool. Breakfast is also available, making it a great choice for those looking to add a touch of luxury to their stay.
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2. Chueca, a very good place to stay in Madrid
Chueca is known for being the gay district of Madrid and one of the most popular in Europe for the LGTBIQ+ community. In Chueca, you will find a great variety of terraces where you can sit and have a drink, specialized stores, art galleries, markets…
It is, without a doubt, one of the neighborhoods with the best atmosphere in the city and, therefore, one of the best neighborhoods to stay in Madrid. Two of the essential places to visit in Chueca are the Plaza de Chueca and the San Anton Market. Be sure to get lost in its streets.
Chueca is located north of Gran Via, with Fuencarral Street to the west, Barquillo Street to the east, and Sagasta Street to the north. It is a very central area, perfect for walking to many of Madrid’s attractions. It also has many restaurants, so you will be well served.
Recommended hotels in Chueca
If you decide to stay in Chueca, you can consider the following accommodations:
- $: CH Las Murallas. This hotel offers great value for money. They have double and family rooms.
- $$: Woohoo Rooms Chueca. A 2-star hotel with very good reviews and great location. They offer junior suites and family suites.
- $$$: Room Mate Oscar. 3-star hotel located in Chueca, very close to Gran Via. There are double and triple rooms. It has a terrace with a swimming pool and bar. Breakfast is served.
- $$$$: Only YOU Boutique Hotel Madrid. 4-star hotel with beautiful facilities. They offer several types of double rooms. It has a spa, gym, bar, and restaurant.
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3. Sol – Gran Vía, if you want to stay in the center of Madrid
Puerta del Sol is considered the heart of Madrid, and any hotel within these streets will be very well located. The metro station at Sol has many connections to various lines, which makes traveling to other parts of the city very easy, whether using public transportation or walking.
Same goes for Gran Vía, one of the most famous streets in Madrid. The whole area from Sol to Gran Vía makes up the central core of the city. That being said, the location is good; however, for such a busy area, the large crowds could give you a headache sometimes.
There are plenty of stores and restaurants around, but they are all chains and not exactly those special and unique places that you find only in some neighborhoods in Madrid.
Recommended hotels in Sol – Gran Vía
In this area of the city, I recommend the following accommodations. You’ll find options for different budgets:
- $: Hostel Río Paraná. Basic hotel but with a very central location, 100 meters from Sol. All rooms are air-conditioned, and some have a balcony. They are single, double, and triple.
- $$: Hostal Aresol. Very good value for money but usually sells out soon. They offer single and double rooms (two categories).
- $$$: Hotel Liabeny. 4-star hotel with single, double, triple, and family rooms. It houses a gym with sauna, restaurant, bar-café, meeting rooms, and parking.
- $$$$: Hyatt Centric Gran Via Madrid. A 5-star hotel with beautiful facilities. It has a 24-hour gym, 3 restaurants, and a nice terrace. Buffet breakfast is served.
4. Chamberí, a traditional and quiet area to stay in Madrid
Chamberí is one of the most traditional neighborhoods in Madrid. It was the place of residence of part of the aristocracy in the nineteenth and twentieth centuries. It is a district of wide streets more traditional and quiet, away from the hustle and bustle of downtown Madrid.
This neighborhood hides very interesting places, such as the Sorolla Museum or the Chamberí Station, an old subway platform converted into an interpretation center of the Madrid Metro. Some of the most popular places to have a drink are Plaza de Olavide or Calle Zurbando, where, apart from restaurants, you will find several museums and boutique stores.
Chamberí is located north of the neighborhoods of Malasaña and Chueca. If you want to stay in a more relaxed area that has a wide gastronomic and cultural offer, Chamber is a very good option to stay in Madrid.
Recommended hotels in Chamberi
In Chamberí, accommodations tend to be a bit more expensive. Here are some options:
- $$$: Hotel Sardinero Madrid. Located in a historic building. Offers several types of double rooms (some with extra beds). Buffered breakfast is served, and there is a bar.
- $$$: The Pavilions Madrid. A 4-star hotel with tastefully decorated double and family rooms. There is a bar, restaurant, gym, and private parking.
- $$$$: Relais & Châteaux Hotel Orfila. Beautiful 5-star hotel housed in a 19th-century palace. There is a restaurant, tea room, terrace, Michelin-starred restaurant, and private parking.
5. La Latina, a neighborhood in Madrid worth staying in
Getting lost in the streets of La Latina is one of my favorite things to do in Madrid, and the neighborhood has a very special essence! During the weekends, you will find this place livelier than ever, especially on Sundays due to the Madrid Rastro. The rest of the week is a bit quieter, although it always has a good atmosphere.
In La Latina, you will be able to enjoy small charming squares, tapas bars, traditional markets, etc. Its streets mix traditional architecture with a more bohemian and youthful atmosphere, achieving a perfect mix.
It is a very good place to stay in Madrid, especially if you want to opt for cheaper options while still being in the center. La Latina is surrounded by Sol, Gran Vía, Lavapiés, Madrid Río, and Los Austrias.
Recommended hotels in La Latina
All of these options are great if you decide to stay in La Latina:
- $: Hostal Rofer. Basic hotel but with everything necessary for a comfortable stay in the city. It has double rooms, all with private bathrooms.
- $$: L&H La Latina Selection. Hotel with double rooms, triple rooms, and suites. All have kitchens, which is great for making some meals in the accommodation. Private parking is available.
- $$$: Posada del León de Oro Boutique Hotel. A 4-star hotel with facilities that combine the old with the new. It has a bar and restaurant. A buffet breakfast is also served every morning.
6. Lavapiés, the most multicultural neighborhood in Madrid
Lavapiés is one of the most popular neighborhoods in Madrid in recent years. It is made up of narrow, steep streets that preserve their medieval origins. It is also the most multicultural neighborhood of the city, since many immigrants settled in Lavapiés, bringing part of their customs and traditions.
This diversity of cultures is one of the most characteristic features of this neighborhood and one of the reasons why it is so striking and popular. As a result, you will find many restaurants of different cuisines.
The Lavapiés neighborhood is surrounded by La Latina, the Sol area, and the Barrio de las Letras. While it is true that Lavapiés is not home to many tourist attractions, many parts of the city can be reached on foot.
For example, if you are going to visit the Reina Sofia Museum, you will be very close. In addition, you will also be close to the Atocha station. You can also visit La Tabacalera, La Casa Encendida, the library of the Escuelas Pías, the Sala Equis, or the Cine Doré.
Recommended hotels in Lavapiés
In Lavapiés, you’ll find all kinds of accommodations. Here are my recommendations:
- $: Hostal Montaloya. 2-star hotel located about 5 minutes walk from Sol and next to the mtro. They offer single and double rooms.
- $$: Ok Hostel Madrid. A hotel with shared (mixed and female) and private rooms. It has a bar and also houses a lounge and kitchen for common use.
- $$$: Artrip Hotel. Charming 2-star hotel with very good reviews. The decor is simple but very cozy. They have double, triple, and family rooms. All with soundproof walls and some with balconies. Buffet breakfast is available.
- $$$: 60 Balconies Art. This is a great option if you prefer to stay in a studio or apartment. All are very well equipped and decorated. The hotel is very close to Atocha station.
7. Barrio de las Letras (The Literary Quarter)
The Barrio de las Letras, also known as Huertas, is another great place to stay in Madrid. There is a reason why this neighborhood has the name it has, and it is that it was home to great writers during the Spanish Golden Age. In fact, in Huertas Street, you can find different fragments of several literary works.
Its pedestrian streets are home to numerous restaurants, independent stores, and bars where you can go dancing. Its nerve center is Plaza Santa Ana, a place where you can go for a drink.
The Barrio de las Letras is surrounded by the areas of Sol, Lavapiés, and Paseo del Prado. If you like museums and exhibitions, this is your place. You will be close to the Prado Museum, the Thyssen, and the Reina Sofia, the best museums in Madrid. There are many different types of hotels.
Recommended hotels in the Barrio de las Letras
In the Barrio de Las Letras, hotels are also very diverse, so there are options to suit every taste and budget:
- $: Hostal Alonso. Hotel with single, double, and triple rooms with shared bathrooms and a double room with a private bathroom. There is a fan but no air conditioning (keep this in mind if you are going in the summer).
- $: Hostal Madrid Sol. Good value for money. They offer double rooms with private bathrooms and air conditioning. It is only 5 minutes walking distance from Sol.
- $$: Alojamiento Jaén. Hotel located between Puerta del Sol and the Prado Museum. There are single and double rooms, some with shared bathrooms and others with private bathrooms.
- $$$: Room Mate Alba. A 4-star hotel with very cozy decor. It has several types of double rooms and offers a bar and fitness center.
- $$$$: CoolRooms Palacio de Atocha. 4-star hotel with double and family rooms. It has a bar, restaurant, garden, and outdoor pool.
- $$$$: Grand Hotel Inglés. 5-star hotel occupying a 19th-century building, perfect if you are looking for a luxurious experience. They offer double rooms and suites. There is a bar, gym, and restaurant.
8. Salamanca, for a luxurious stay in Madrid
Salamanca is the most exclusive residential neighborhood in Madrid. Its buildings have very beautiful and elegant facades. In its streets, you will find numerous 4- and 5-star hotels, boutiques of the most exclusive brands, and luxurious restaurants, some with Michelin stars.
Its most emblematic street is Serrano, a paradise for those who can go shopping without limit. This street also houses the National Archaeological Museum.
During the day, it is a lively neighborhood, as it is one of the main shopping areas of Madrid. During the night, it is a very quiet area. Salamanca is located north of El Retiro and east of Chueca and Chamberí. If you are a person of great luxury or if you want to stay near the Retiro, Salamanca is a great option where to stay in Madrid.
Recommended hotels in Salamanca
Hotels in Salamanca are usually on the pricier side. These two are great options:
- $$$: Catalonia Goya. Fantastic 4-star hotel located in a 19th-century building. Soundproofed and air-conditioned rooms. There is a bar-café, a small fitness center, and a small pool in the courtyard.
- $$$$: ICON Wipton. Beautiful 4-star boutique hotel with very attractive avant-garde decor. They offer double, triple, and family rooms. There is a bar and restaurant. A buffet breakfast is served each morning.
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9. Madrid de los Austrias or “Hapsburg Madrid”, for history lovers
Madrid de los Austrias is the oldest district of the Spanish capital. Its interior houses some of the most important monuments of the city, such as the Almudena Cathedral, the Plaza Mayor, or the Royal Palace. It is for this reason that in its streets you will find many tourists. In addition, it is a very nice area of Madrid to walk around.
The Austrias neighborhood is located west of Sol and north of La Latina. If you want to live and feel the most historical and traditional Madrid, I recommend you choose your hotel in this area.
Some of the best things to see and do in this neighborhood are to visit the Royal Palace and the Sabatini Gardens, the Campo del Moro, the Plaza Mayor, the Almudena Cathedral, and the Opera House.
Recommended hotels in Madrid de los Austrias
These are the hotels I recommend in Madrid’s Austrias neighborhood:
- $$: Hostal Mayor. This hotel is located between Puerta del Sol and Plaza Mayor. It has single and double rooms with private bathrooms and air conditioning.
- $$$: Room Mate Mario. A 2-star hotel with very good facilities. There are single rooms, double rooms, and suites; all of them quite spacious.
- $$$$: VP Plaza España Design. A 5-star hotel located in the Plaza de España. It has a bar, restaurant, and a terrace with views and a swimming pool. It also has a gym and a spa on the first floor.
- $$$$: Palacio de los Duques Gran Meliá. This beautiful 5-star hotel occupies a 19th-century palace. It has a terrace with views and a seasonal rooftop pool.
Frequently asked questions about where to stay in Madrid
To make things easier, I’ve answered some of the top questions people usually ask when deciding where to stay in Madrid.
If you’re traveling with children, I’d suggest the Salamanca or Chamberí neighborhoods. Salamanca has wide avenues, is close to Retiro Park (depending on the exact hotel location), and is quiet at night. Chamberí is a residential area north of Chueca and Malasaña, with several plazas and parks. It’s also peaceful and well connected.
Although at certain times of the year it can be tricky to find affordable accommodation in Madrid, it’s always possible, especially if you book in advance, to find a decent budget-friendly option. Areas like Delicias, Embajadores, Lavapiés, or La Latina tend to have more economical rooms.
Yes, you can find budget hotels in central Madrid with good reviews. They’re modest accommodations, but perfectly fine as a base. Some options worth checking out are Fuencarral Adeco or Hostal Adis.
The best area for sightseeing is the city center. Anywhere between Gran Vía and Puerta del Sol, along with the surrounding neighborhoods, is a great choice. Personally, I love Chueca and Malasaña.
If you’re visiting Spain’s capital by car, you can leave it in the hotel’s parking lot or a nearby paraking, but it will be quite expensive. To avoid the extra cost, I’d suggest choosing a hotel outside the SER zone (Madrid’s controlled parking area) that’s still well connected to the center by public transport.
Depending on the time of year, you can find very basic hotels for under €100 a night. During peak season, like December, prices rise significantly, making it nearly impossible to find a good deal. On the other hand, in August you’ll usually come across some excellent offers.
Map of where to stay in Madrid
In the following map, I have marked all the neighborhoods and hotels in Madrid recommended in this article, with their respective links to Booking. I hope you find it very useful to decide where to stay during your stay in the Spanish capital.
I hope this article on where to stay in Madrid has been helpful for planning your trip to Madrid. If you have any questions, feel free to leave a comment. See you next time!
