Where to Stay In Madrid: Best Neighbourhoods & Top Hotels

Promising world-class art galleries, countless sunny plazas (squares), and a food scene that will please even the most discerning foodie, Madrid is one of Europe's must-visit destinations.

Sometimes wrongly overlooked for Spain's coastal destinations like Barcelona, Madrid has something for every type of traveller, whether you're a history buff in search of sites or you're on the hunt for vibrant nightlife.

Wondering where to stay in Madrid depending on your preferences? After visiting Seville numerous times, I've put together this in-depth guide to the city's barrios (neighbourhoods) and the best hotels to stay in Madrid that will allow you to get the most out of your trip.

The Best Areas to Stay in Madrid

One of the biggest benefits of Madrid is that it's super easy to navigate – you can get around the majority of the city centre on foot, and there's a clean, timely Metro service for those places that are a little further out. With that in mind, the best area to stay in Madrid for first-time tourists can apply to various neighbourhoods around the city, with most of them providing proximity to the biggest sites of the Spanish capital.

The city's natural centre is Sol. In fact, in Sol's main square, you'll actually find the centre point for the entire country! Sol is home to Plaza Mayor, the famous Puerta del Sol, and it's also right next to the Royal Palace. North of Sol, you'll find Madrid's biggest shopping street, Gran Vía, and further north still lie two of Madrid's coolest neighbourhoods – Chueca and Malasaña.

Chueca is a hub of food markets, hip restaurants, and Madrid's LGBTQ+ community. In Malasaña, the streets are lined with vintage clothing stores and quirky bars. South of Puerta del Sol (Sol's central hub) lies La Latina, which is home to the city's best tapas. Lavapies is filled with international eateries and Barrio de Las Letras is Madrid's cultural hub.

Families will be right at home in the tranquil Retiro district, while Salamanca is the go-to destination for luxury lovers. If you're wondering ‘where should I stay in Madrid?', read on to find out more about the most unique places to stay in Madrid, the best 5-star hotels in Madrid, and much more.

1. Where to stay in Madrid for the first time & main sights: Sol

If a central location is your priority when looking for the best place to stay in Madrid, Sol should be your go-to destination.

Located right in Madrid's city center within walking distance of essentially all the main sites and other central neighbourhoods, Sol is Madrid's beating heart and home to the city's iconic Plaza Mayor. This area is a tourist hotspot, however, so if you're looking to be away from the crowds, it shouldn't be your first choice.

Things to do & see in Sol:

• Visit Plaza Mayor

• Check out Puerta Del Sol

• See the centre point of Spain

• Enjoy churros at my favourite Chocolatería San Ginés

• Go shopping on Gran Vía and end up on Plaza de España

Best area for:

• Tourists

• First-time visitors

Best hotels to stay in the centre of Madrid

($$$) UMusic Hotel Madrid

Situated in the heart of the Spanish capital, UMusic Hotel Madrid provides an outdoor swimming pool, air-conditioned rooms, a stylish hotel bar, and friendly staff that speak a variety of languages.

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($$) 7 Islas Hotel

If not the best boutique hotel in Madrid, it's definitely up there! 7 Islas offers rooms with exceptionally stylish contemporary decor and some even include a terrace.

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($) Hotel Moderno Puerta del Sol

Just 150 metres away from Madrid's famous Plaza Mayor, this modern hotel boasts contemporary, well-equipped bedrooms and a delicious breakfast.

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2. Where to stay in Madrid for cool hipster vibes: Malasaña

With arguably some of the best vintage shops in Europe, a plethora of vegan eateries, and bars with quirky names like Tupperware, Malasaña is undoubtedly where the cool kids go.

Originally part of a cultural revolution in the 80s and 90s, Malasaña is known for its hipster vibes and its laid-back hangout spot, Plaza Dos De Mayo. It also boasts excellent nightlife and on the weekends, its bar-lined streets are full of people hanging out, chatting, and grabbing a drink. If you're looking for cool places to stay in Madrid, look no further.

Things to do & see in Malasaña:

• Enjoy a drink in Plaza Dos de Mayo

• Learn about the city in the History of Madrid Museum

• Go vintage shopping

• Visit the many bars

• Visit the food market Mercado de San Ildefonso

Best area for:

• Vintage clothing lovers

• Party seekers

• Hipsters

• People wanting to stay in a more authentic neighbourhood

Best hotels to stay in Malasaña

($$$) Dear Hotel Madrid

Home to a gorgeous rooftop plunge pool and a stylish upscale restaurant and bar, Dear Hotel is the perfect destination for luxury lovers in Madrids' coolest neighborhood.

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($$) Hostal Palacio Luna

Offering proximity to Gran Vía and clean, safe contemporary rooms, Hostal Palacio Luna is a pleasant and affordable hotel in one of the city's most exciting areas.

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($) Bloom Inn Madrid

This contemporary guest house is perfect for those wanting to be near the action without having to break the bank.

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3. Where to stay in Madrid for great nightlife: Chueca

If you like good food, good drinks, and even friendlier people, you'll love Chueca. Home to the buzzing Plaza de Chueca and the popular food market, which comes with a rooftop terrace!

Mercado de San Antón, Chueca is a fun, friendly district with plenty of bars and cafes to keep you fed and watered, making it the best area to stay in Madrid for nightlife. It's also Madrid's LGBTQ+ district, with annual Pride events taking place in this thriving cultural hub.

Things to do & see in Chueca:

• Grab a bite to eat in Mercado de San Antón

• Visit Plaza de Chueca, conveniently located by the metro station

• Walk down the nearby shopping street Calle de Fuencarral

• Visit the Museum of Romanticism

Best area for:

• LGBTQ+ travellers

• Foodies

• Visitors seeking nightlife

Best hotels to stay in Chueca

($$$) URSO Hotel & Spa

This absolutely stunning 5-star hotel boasts elegant air-conditioned rooms, free WiFi, a spa, a gym, and a traditional brasserie serving up delicious food.

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($$) Room Mate Oscar

Home to a rooftop bar and terrace with one of the most impressive views in all of Madrid, this stylish hotel offers contemporary rooms and modern amenities.

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($) Hostal San Lorenzo

With well-equipped rooms and a helpful 24-hour front desk, Hostal San Lorenzo is the perfect jumping-off point for exploring Chueca for travellers on a budget.

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4. Where to stay in Madrid for families & couples: Barrio de Las Letras & Retiro

Barrio de Las Letras, in English The Literary Quarter, is so-called because of the famous writers that have walked its streets, including Spanish icon Lope de Vega.

This vibrant district is central enough for you to enjoy the sights while being tranquil enough to be family-friendly. Plaza Santa Ana is a must-visit for a glass of sangria.

Meanwhile, if you're seeking greenery in the city and wondering where to stay in Madrid with your family, look no further than Retiro. Home to Madrid's iconic park with a boating lake at its centre, this area is close to the action while still being quiet and family-friendly. It's also the best place to stay in Madrid for couples who like it a bit quieter.

Things to do & see in Barrio de Las Letras & Retiro:

• Relax in El Retiro park

• Enjoy a drink in Plaza Santa Ana

• Visit one of Madrid's three famous art galleries (known as The Golden Triangle): Museo del Prado, Museo Nacional Centro de Arte Reina Sofia, and Thyssen-Bornemisza Museo Nacional

Best area for:

• Art lovers

• Families and couples

• Nature lovers

Best hotels to stay in Barrio de Las Letras & Retiro

($$$) Room Mate Alba

Home to some of the most stylish rooms you'll find in Madrid, Room Mate Alba offers air conditioning, free WiFi, a fitness centre, and a bar.

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($$) Only YOU Hotel Atocha

Located not far from Atocha train station, Only You offers soundproofed rooms with flat-screen TVs, private bathrooms, and free toiletries.

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($) Catalonia El Retiro

This clean, contemporary hotel offers proximity to the centre and even lets guests bring a cat or dog with them.

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5. Where to stay in Madrid in a central location without the crowds: La Latina

For visitors to Madrid, La Latina offers the perfect compromise – proximity to all the hustle and bustle in walking distance while still retaining access to a more authentic side of Madrid.

If sunny terraces and tapas bars are what you're looking for, you'll find them in abundance in this stylish neighbourhood. La Latina is also where the city's largest flea market, El Rastro, takes place every Sunday.

Things to do & see in La Latina:

• Go for lots of tapas

• Visit El Rastro weekend market

• Relax in Plaza de La Cebada or Plaza de La Paja

• Eat at the world's oldest restaurant, Restaurante Botín

Best area for:

• Tapas lovers

• Those looking to escape the crowds

Best hotels to stay in La Latina

($$$) L&H La Latina

Located within walking distance of plenty of shops, restaurants, bars, and even the Royal Palace, L&H La Latina offers guests a range of trendy apartments and studios with modern amenities.

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($$) Posada del León de Oro Boutique Hotel

Offering rooms with a range of quirky decor, this boutique hotel offers a restaurant that serves up traditional Spanish cuisine and a fantastic location just a 15-minute walk from Madrid's biggest sights.

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($) Porcel Ganivet

With soundproofed rooms and a tasty breakfast, Porcel Ganivet offers a pleasant experience for travellers on a budget in La Latina.

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6. Where to stay in Madrid for luxury hotels & boutiques: Salamanca

To enjoy upscale shopping, boutique hotels, and Madrid's iconic bull ring, Las Ventas, head to Salamanca. Famously refined, Salamanca is located slightly further out of the city centre than the more centrally located neighbourhoods and it boasts a more exclusive feel.

This is where the city's wealthy live, which becomes clearer the more you walk around this district and notice its designer boutiques and haute cuisine dining options.

Things to do & see in Salamanca:

• Go shopping

• Visit the bullring, Plaza de toros de Salamanca – La Glorieta

• Visit Museo Lázaro Galdiano

Best area for:

• Shoppers

• People seeking a boutique or luxury hotel

• Avoiding the crowds

Best hotels to stay in Salamanca

($$$) Melia Madrid Serrano

With a gorgeous outdoor terrace and rooms with luxury touches, Melia Madrid Serrano is the perfect destination if you're looking to make your trip to Madrid extra special.

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($$) Velázquez 45 by Pillow

With all rooms promising a flat-screen TV, air conditioning, and modern amenities, this well-located hotel is the perfect blend of style and affordability.

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($) Catalonia Goya

With a fitness centre, plunge pool, and 24-hour front desk, Catalonia Goya is the perfect destination for those hoping to be away from the hustle and bustle while maintaining easy access to Madrid's main sights.

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7. Where to stay in Madrid on a budget & international vibes: Lavapiés

Trendy up-and-coming neighbourhood, Lavapiés, has a large international population, which gives it a unique and vibrant feel.

Home to plenty of restaurants serving up food from around the world, colourful murals, a lively tapas bars, Lavapiés is also the district in which you're most likely to find budget accommodation and places to eat and drink. It's located just South of central Madrid, so you're still near big attractions like the Royal Palace.

Things to do & see in Lavapiés:

• Try international cuisines

• Visit the food market Mercado Anton Martín

• Spot the colourful mural walls

Best area for:

• Foodies

• Travellers on a budget

Best hotels to stay in Lavapiés

($$$) Atocha Hotel Madrid, Tapestry Collection by Hilton

Featuring a 24-hour front desk, concierge service, and air-conditioned room, this stylish hotel offers a great location with easy access to Madrid's centre.

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($$) Radisson RED Madrid

With on-site parking and rooms with stylish furniture, Radisson RED is perfect for visitors wanting to stay in the international district of Lavapiés while being close to Madrid's three main art galleries.

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($) Hotel Mediodia

Offering stylish accommodation just a stone's throw from the city centre, this modern hotel features a continental breakfast, 24-hour front desk service, and free WiFi.

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Where to Stay in Madrid – Frequently Asked Questions

⭐ Is Madrid worth visiting?

Madrid is absolutely worth visiting. The Spanish capital is culturally rich and blends traditional authentic Spanish culture (see the plethora of tapas bars) with the progressive, cool youth culture that can be seen in areas like Chueca and Malasaña. From shopping to nightlife to art and history, it truly offers something for every type of traveller.

📍 Where can I find the city centre in Madrid?

Sol is Madrid's centre, and it's actually home to the centre of the entire country! Most of the city's other neighbourhoods are well within walking distance from this central spot. Sol is serviced by a metro station with the same name, with lines and routes that navigate you all around the city.

📅 How many days should I stay in Madrid?

If you're up for lots of walking and long days, you can see most of Madrid in a long weekend. But if you're hoping to get the most out of this beautiful city and explore various districts, aim for 5-7 days. Visitors staying for more than a week can enjoy day trips from Madrid to nearby areas such as historic Toledo and El Escorial, with the world's largest Renaissance building.

🏨 What's the best area to stay in Madrid?

Sol is undoubtedly the most convenient area to stay in the city, but it's not the most authentic. Where to stay in part depends on your preferences. Nightlife lovers will adore Chueca, La Latina, and Malasaña, while areas like Barrio de Las Letras, Salamanca, and Retiro are ideal for a more tranquil stay. If the main purpose of your visit is exploring Madrid's food culture, you'll find international restaurants in Lavapiés and the best tapas in La Latina.

🚶 Can you walk around Madrid?

The majority of Madrid's centre is easy to walk around, so you certainly won't need to hire a car. If you do find yourself having to travel slightly out of the way, there's a clean, cheap, easy-to-navigate metro system, or you can easily flag down taxis.

❓ Is Madrid or Barcelona better?

While both are major cities in Spain, it's impossible to say whether Madrid or Barcelona is better as they both offer different experiences. Barcelona is home to the coast, beaches and Gaudí's famous architecture, as well as being the capital of the Cataluña region which has its own distinct language and culture. Madrid is arguably more quintessentially Spanish, with world-class art galleries and plenty of plazas where you can enjoy a drink.

If you're looking for sun, sea, and sand with more experiences catered to tourists, you might prefer Barcelona. Those looking for a city break with a happy blend of nightlife and culture will love Madrid. That said, if you have the time and the budget, aim to visit both of these vibrant Spanish cities.

Where to Stay in Madrid – Final Words

Madrid is a vibrant cosmopolitan city, home to several neighbourhoods, each with its own distinct charm and vibe.

No matter if you're visiting for nightlife, history, food, and drink, or all of the above, you'll find somewhere to stay in Spain's stylish capital.