Where to stay in Madrid [Most Comprehensive Guide for 2023]

The Royal Palace of Madrid aerial panoramic view. Palacio Real de Madrid is the official residence of the Spanish Royal Family in Madrid, Spain

Madrid is Spain’s central capital, renowned for art and culture. Madrid has many charming and trendy neighborhoods, bustling with nightlife, so deciding where to stay in Madrid can be overwhelming.

Luckily, we’ve rounded up some of the best neighborhoods in Madrid to help you decide where to stay when you visit Madrid. This is an insiders guide to where to stay in Madrid

We will cover off all types of Madrid accommodation options from Hostels to luxury Madrid hotels as well as how to decide where to stay in Madrid 2023, the best Madrid hotels, best places in Madrid to visit, the best places to stay in Madrid, hotels near Madrid attractions, Madrid neighborhood guide and many more.

Plan your trip?

Avoid hidden fees in the exchange rate while withdrawing from millions of ATMs abroad, paying in restaurants and shops, and buying your accommodation and flights using the Wise Card. You can hold up to 50+ currencies at once, and convert them in real time with the free Wise app.

Need help planning your trip from start to finish? Check out these helpful links:

Cheap flights
Savings on accommodation from hostels to luxury hotels
Affordable car rental options
Affordable sightseeing tours and day trips
Travel Adapter – All in one so you don’t have to carry a bunch around

This post contains some affiliate links for your convenience. Click here to read my full disclosure policy.

Table of Contents

Malasana – Where to stay in Madrid for tourists

Best for – Hipster travelers Who Want to Blend In, On a Budget

Malasana is a young, trendy neighborhood with hipster vibes and if often referred to as Madrid’s hippest neighborhood.

Centered around the Plaza del 2 de Mayo and near the Tribunal Metro stop, the counter-cultural scene in Malasana still holds strong.

Malasana is the best place to stay if you are wondering where to stay in Madrid for one night, it’s also the best place to stay in Madrid for sightseeing.

Hundreds of excellent, inexpensive food options, darling boutique shops and dozens of nightclubs make Malasana a popular neighborhood for students and young travelers and tourists alike.

Within walking distance is the popular open air Rastro flea market, the largest flea market in Spain, held every Sunday (and public holiday). This it the best area if you want to know where to stay in Madrid city centre.

Best Places to Stay in Malasana:

Budget Hotels in Malasana:
Hostal Sil & Serranos
Hostal Benamar
Hostal Ballesta
Hostal Buenos Aires

Mid-Range Hotels in Malasana:
Sercotel Gran Hotel Conde Duque
Aparthotel Tribunal
Hotel One Shot Luchana 22
Leonardo Hotel Madrid City Center

Family Friendly Hotels in Malasana:
Agora Juan de Austria
Senator Gran Via 70 Spa Hotel

Affordable Luxury Hotels in Malasana:
URSO Hotel & Spa
Hyatt Centric Gran Via Madrid
Melia Madrid Princesa

Madrid, Spain - Street scene in Malasana district in Madrid. Malasana is one of the trendiest neighborhoods in Madrid, well known for its counter-cultural scene

Chueca – Where to stay in Madrid on a Budget

Best for – Trendy Travelers Looking for an LBGTQ Vibe

Chueca is a stylish, trendy neighborhood in Madrid, and is the hub for the cities’ LGBTQ community. Chueca has loads of trendy cafes, bars, restaurants and shops, and visitors in the summer will enjoy the many outdoor terraces in Chueca.

The main square of this neighborhood is Plaza de Chueca. The neighborhood is right in the center of Madrid, and accessible via the Metro, so it’s a great place to stay in Madrid, with easy access to transportation all over the city.

Wondering where to stay in Madrid for the first time, Chueca is the place for you!

Best Places to Stay in Chueca:

Cheapest Hostels in Chueca:
Hostal Sonsoles
Hostal Oxum
Hostal Las Murallas
Hostal Maria Luisa

Budget Hotels in Chueca:
Hostal San Lorenzo
Hostal America
Hostal Benamar
Hostal Vazquez de Mella

Mid-Range Hotels in Chueca:
B&B Hotel Madrid Fuencarral 52
Room Mate Oscar
Vincci The Mint
Petit Palace Chueca

Family Friendly Hotels in Chueca:
Eurostars Central
Petit Palace Santa Barbara
Lusso Infantas
H10 Villa de la Reina Boutique Hotel

Affordable Luxury Hotels in Chueca:
Circulo Gran Via, Autograph Collection (Adults only)
Slow Suites Augusto
Only YOU Boutique Hotel Madrid

Madrid, Spain - High angle view of buildings in Chueca district in centre of Madrid. Augusto Figueroa Street

Salamanca – Where to stay in Madrid for couples

Best for – Luxury Travelers Seeking a Five-Star Experience

Northeast of Madrid’s historical center, you’ll find Salamanca, an upscale neighborhood featuring fine dining establishments and designer boutiques. Salamanca is Madrid’s most expensive neighborhood, and the most elegant. The “Golden Mile” is full of luxury retailers such as Louis Vuitton.

Once you’ve shopped til you drop, Salamanca offers an assortment of five-star hotels to kick up your feet.

Just minutes away from Salamanca is Madrid’s green lung, Buen Retiro Park, one of the largest parks in Madrid and a must-see for any visitors to the city.

Best Places to Stay in Salamanca:

Cheapest Hostels in Salamanca:
Hostal Retiro

Budget Hotels in Salamanca:
Hostal La Nava
Apartamentos Juan Bravo
Hostal Salamanca
Aparthotel Quo Eraso

Mid-Range Hotels in Salamanca:
NeoMagna Madrid
Hotel Zenit Abeba
Vincci Soma
VP EL Madrono

Family Friendly Hotels in Salamanca:
Apartamentos Ramon de la Cruz 41
NH Madrid Lagasca
H10 Puerta de Alcala

Affordable Luxury Hotels in Salamanca:
ICON Casona 1900 by Petit Palace
Heritage Madrid Hotel
Wellington Hotel

Over look New Cathedral Belltower of Salamanca and surroundings from La Clerecia in Salamanca Castilla y Leon Spain

Gran Via – Where to stay in Madrid with family

Best for – Travelers Wanting the Full Tourist Experience

The Gran Via area is Madrid’s central commercial and historical district, filled with monuments, shops, bars and restaurants.

Many popular tourist destinations are in this area, including the Sun Gate Plaza and the Plaza Mayor.

This district caters to tourists, so it’s a popular place to stay in Madrid for those seeking a familiar experience, with international brands.

The central location also makes Gran Via a good place to stay in Madrid as you will be able to easily access other neighborhoods during your stay.

Best Places to Stay in Gran Via:

Cheapest Hostels in Gran Via:
Helena 2 Hostal
Hostal Granvia 44
Hostal Miami
Hostal Stella

Budget Hotels in Gran Via:
Hostal Gala
Hostal Ballesta
Hotel Anaco
Woohoo Hostal Madrid

Mid-Range Hotels in Gran Via:
Hotel Atlantico
Hotel Indigo Madrid – Gran Via
Tryp Madrid Cibeles Hotel
Vincci Capitol Hotel

Family Friendly Hotels in Gran Via:
Hotel Preciados
Intur Palacio San Martin
Emperador Hotel Madrid
Hotel Santo Domingo Madrid

Affordable Luxury Hotels in Gran Via:
Hotel Urban
Gran Hotel Ingles
VP Plaza Espana Design
Gran Melia Palacio de Los Duques

View above on Gran Via Street in Madrid at day time traffic car on Gran Via street main shopping and financial street in capital of Spain. Madrid.

Huertas – Best area to stay in Madrid for nightlife

Best for – Foodie Travelers & Literature Fans

Huertas, also the Barrio de las Letras (Literary neighborhood) is a central Madrid neighborhood with many trendy bars and restaurants.

Just five minutes walk from the Sol neighborhood, Huertas is a popular place to go out in the evenings.

Calle Huertas is the main street, lined with bars, but Huertas also has many small streets and alleys you should explore as there are hidden gems here for eating and drinking.

Best Places to Stay in Huertas:

Cheapest Hostels in Huertas:
Hostal Cervelo
Hostal Pacios
Hostal Adria Santa Ana

Budget Hotels in Huertas:
Hostal Atocha Almudena Martin
Hostal Tijcal II
El Pasaje

Mid-Range Hotels in Huertas:
Hotel Miau
Hotel Room Mate Alicia
Hotel Catalonia Plaza Mayor
Catalonia Las Cortes

Family Friendly Hotels in Huertas:
Catalonia Puerta Del Sol
Casual Madrid del Teatro
Hotel Victoria 4

Affordable Luxury Hotels in Huertas:
NH Collection Palacio de Tepa
Hotel Villa Real
Axel Hotel Madrid (Adults Only)

Huerta Cathedral in the historical center of Tarazona Spain

Atocha – Best location to stay in Madrid

Best for – Convenience Seeking Tourists

Not far from Huertas, Atocha is another chic Madrid neighborhood that has something for everyone.

Some of Madrid’s best art museums, such as the Reina Sofia art museum and the Anthropology museum are found in the Atocha neighborhood.

It is also home to the Atocha train station, Spain’s largest train hub, where you can catch a high-speed train to other areas of Spain, or commuter trains will take you to other neighborhoods in Madrid.

Within many of Atocha’s historical buildings, you’ll find many guesthouses and hotels to choose from.

Best Places to Stay in Atocha:

Cheapest Hostels in Atocha:
Hostal San Blas
Hostal Castilla I
hostal gonzalo
Hostal La Vera

Budget Hotels in Atocha:
SLEEP’N Atocha
Urban Sea Atocha 113
Hotel Mora
Hostal Atocha Almudena Martin

Mid-Range Hotels in Atocha:
Hotel Mediodia
NH Madrid Nacional
NH Madrid Atocha
AC Hotel Carlton Madrid

Family Friendly Hotels in Atocha:
Mercure Madrid Centro
DoubleTree by Hilton Madrid-Prado
Hotel Agumar

Affordable Luxury Hotels in Atocha:
Only YOU Hotel Atocha
AC Palacio Del Retiro, Autograph Collection
NH Collection Paseo del Prado
NH Collection Madrid Suecia

MADRID, SPAIN - Basilica of Our Lady of Atocha in City of Madrid, Spain

Lavapies – Best neighborhood to stay in Madrid

Best for – Visitors Seeking a Multi-Cultural Experience

Just one stop from Sol, Lavapies is one of Madrid’s most well-known multicultural neighborhoods, but is also undergoing gentrification on its way to the trendy list.

Lavapies has long been home to immigrant families, most often from Africa or the Middle East, therefore you will find excellent ethnic food options here and interesting shopping, too.

If you are looking for Indian food, Lavapies is the place to find the best curries.