Where to stay in Madrid [Best Places to Stay for 2025]

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 Spain.

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 2025.

This guide shows off the best Madrid hotels, best places in Madrid to visit, the best places to stay in Madrid, hotels near Madrid attractions, Madrid neighborhoods and many more.

Wondering where is the best place to stay in Madrid? Below are 9 of the best neighborhoods to stay in Madrid to help you make the right decision when trying to work out best areas to stay in Madrid for you. We have tried to make the guide as easy to follow as possible.

We have also included some things to do or places to visit as well as some eatery suggestions of either our favourite places or some funky places to eat at within the areas in Madrid so you can use this as a go to guide.

Malasana – where to stay in madrid first time

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, making it the best area to stay in Madrid for tourists.

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

Cheapest Backpacking Hostels in Malasana

• Generator Madrid
• Madrid Motion Hostels
• HC Hostel
• MuchoMadrid

Budget accommodation in Malasana

• Hostal Abami II
• Hostal Santillan
• Hotel Life Gran Via
• Woohoo Hostal Madrid

Mid range accommodation in Malasana

• 7 Islas Hotel
• Vincci Capitol
• Hotel Santo Domingo
• Hotel Indigo Madrid – Gran Via

Family Friendly accommodation in Malasana

• Gran View Apartments
• limehome Madrid Calle de la Madera
• Morar Apartments Malasaña
• Dear Hotel Madrid

Affordable Luxury accommodation in Malasana

• Barceló Torre de Madrid
• Hyatt Centric Gran Via Madrid
• Palacio de los Duques Gran Meliá
• VP Plaza España Design

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 Backpacking Hostels in Chueca

• Bastardo Hostel
• room007 Chueca Hostel
• H-A San Mateo Suites
• Hostel Center Madrid

Budget accommodation in Chueca

• Woohoo Rooms Chueca
• Hostal El Catalán
• Hostal La Fontana
• Hostal Abril Madrid

Mid range accommodation in Chueca

• Eurostars Central
• NH Collection Madrid Colón
• Hotel Infantas by MIJ
• Only YOU Boutique Hotel Madrid

Family Friendly accommodation in Chueca

• Apartamentos Serrano Recoletos
• JC Rooms Chueca
• Fuencarral Apartments
• Casa Lemus

Affordable Luxury accommodation in Chueca

• Relais & Châteaux Hotel Orfila
• Hospes Puerta de Alcalá
• URSO Hotel & Spa, a Small Luxury Hotel of the World
• Hotel Fenix Gran Meliá – The Leading Hotels of the World

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

Budget accommodation in Salamanca

• Ibis Madrid Centro las Ventas
• Hostal La Nava
• CH Murallas II

Mid range accommodation in Salamanca

• Vincci Soma
• Catalonia Goya
• NH Madrid Lagasca
• AC Hotel Recoletos by Marriott

Family Friendly accommodation in Salamanca

• Novotel Madrid Center
• Petit Palace President Castellana
• ICON Embassy
• Heima Homes Salamanca District MillaDeOro

Affordable Luxury accommodation in Salamanca

• Relais & Châteaux Heritage Hotel
• Rosewood Villa Magna
• BLESS Hotel Madrid – The Leading Hotels of the World
• Hotel Fenix Gran Meliá – The Leading Hotels of the World

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. Wondering where to stay one night in Madrid? Gran via is one of the top attractions in Madrid and a very central loaction.

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 Backpacking Hostels in Gran Via

• Far Home Gran Vía
• Mola Hostel
• Arc House Madrid – Puerta del Sol Only Adults
• Barbieri Sol Hostel

Budget accommodation in Gran Via

• Hostal Aresol
• Hostal Splendid – Gran Vía
• Hotel Mirador Puerta del Sol
• Vázquez de Mella Gran Vía

Mid range accommodation in Gran Via

• Vincci Centrum
• Eurostars Casa de la Lírica
• Vincci The Mint
• Iberostar Las Letras Gran Via

Family Friendly accommodation in Gran Via

• SmartRental Collection Gran Vía Capital
• Hotel Moderno Puerta del Sol
• Regente Hotel
• Catalonia Gran Vía Madrid

Affordable Luxury accommodation in Gran Via

• UMusic Hotel Madrid
• Thompson Madrid, a Hyatt Brand
• JW Marriott Hotel Madrid
• The Madrid EDITION

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 Backpacking Hostels in Huertas

• Ok Hostel Madrid
• Madrid Downtown Hostel
• 2060 The Newton Hostel
• Way Hostel Madrid

Budget accommodation in Huertas

• Hostal Castilla I Atocha
• Hotel Mexico
• Hostal Santa Ana Colors
• SLEEP’N Atocha – B Corp Certified

Mid range accommodation in Huertas

• Mercure Madrid Centro
• Catalonia Atocha
• Catalonia Plaza Mayor
• Radisson Blu Hotel, Madrid Prado

Family Friendly accommodation in Huertas

• vip LETRAS, by MONARO
• Hostal Abadia Madrid
• Radisson RED Madrid
• Hotel Madrid Atocha, Affiliated by Meliá

Affordable Luxury accommodation in Huertas

• NH Collection Madrid Paseo del Prado
• Axel Hotel Madrid – Adults Only
• NH Collection Madrid Palacio de Tepa

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 Backpacking Hostels in Atocha

• Latroupe Prado
• OXYGEN HOSTEL Capsula

Budget accommodation in Atocha

• Retiro VII
• CC Atocha
• 8Rooms Madrid
• Atocha Studios

Mid range accommodation in Atocha

• NH Madrid Atocha
• AC Hotel Carlton Madrid by Marriott
• Genteel Home Reina Sofía
• Latroupe Prado

Family Friendly accommodation in Atocha

• Bob W Arte
• Rafaelhoteles Atocha
• Eric Vökel Boutique Apartments – Atocha Suites
• Ever House Atocha

Affordable Luxury accommodation in Atocha

• AC Hotel Atocha by Marriott
• Hard Rock Hotel Madrid
• Only YOU Hotel Atocha

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.

Best places to stay in Lavapies

Cheapest Backpacking Hostels in Lavapies

• Hostel MYD La Latina

Budget accommodation in Lavapies

• The Barn
• Piramides 1 Apartment
• Charming Circo Price
• La Albarrada del Mesón

Mid range accommodation in Lavapies

• Hotel Puerta de Toledo
• Rafaelhoteles Piramides
• Delagua Apartments Rastro-parking gratuito
• Piso en Calle Provisiones

Family Friendly accommodation in Lavapies

• Apartament Glorieta Puerta de Toledo
• Apartamento Lavapies al lado del Rastro
• BNBHolder Tropical CENTRE
• New & Elegant apartment in the center of Madrid

La Latina – Where to to stay in Madrid for an Authentic Experience

Best for – Visitors Seeking an Authentic Spanish Experience

Adjacent to Lavapies is La Latina, which sits on the footprint of a medieval Islamic fort, creating a maze of narrow alleys to explore.

This neighborhood has historical significance, and is a strong draw for visitors seeking authentic food and drink.

This is the place to grab a beer in the evening, and the narrow streets are filled with al fresco dining when the weather is nice.

Within the winding streets, you’ll also find many squares within La Latina, the most popular being Plaza de La Cebada.

Best places to stay in La Latina

Cheapest Backpacking Hostels in La Latina

• Ronda9 central suites
• Hostels Meetingpoint
• Petit Hostel La Latina

Budget accommodation in La Latina

• Hostal Abaaly
• Hostal La Casa de La Plaza
• Hostal Rofer

Mid range accommodation in La Latina

• HRC Hotel
• Posada del León de Oro Boutique Hotel
• Exclusive Apartment in Historic Center
• Five Windows to La Latina by Batuecas

Family Friendly accommodation in La Latina

• Porcel Ganivet
• L&H La Latina Selection
• Collection La Latina
• Don Pedro Home

Affordable Luxury accommodation in La Latina

• Petit Palace Plaza Mayor
• Posada del Dragón Boutique Hotel

Chamberi – Where to stay in Madrid for Foodies

Best for – Visitors Seeking the Best Tapas

A residential neighborhood filled with expats and students is Chamberi, which also has some of the best tapas bars in Madrid.

Chameri’s location, adjacent to Malasana and Sol, means it also has several public transit stops for easy access around Madrid.

Here you will find beautiful architecture surrounding several quaint plazas, with sidewalk cafes and bars to enjoy.

Best places to stay in Chamberi

Cheapest Backpacking Hostels in Chamberi

• Hostel Palacio
• RESIDENCIA ABAY
• Palafox 23
• Safestay Madrid Central

Budget accommodation in Chamberi

• Hostal Arrate
• Ibis Madrid Centro
• Hostal Moncloa
• Hostal Los Andes

Mid range accommodation in Chamberi

• Leonardo Boutique Hotel Madrid
• Leonardo Hotel Madrid City Center
• Agora Juan de Austria
• Muralto Madrid Princesa

Family Friendly accommodation in Chamberi

• Aparto-Hotel Rosales
• Exe Moncloa
• Hotel Indigo Madrid – Princesa
• Sercotel Gran Hotel Conde Duque

Affordable Luxury accommodation in Chamberi

• Melia Madrid Princesa
• Hotel Princesa Plaza Madrid

Top 5 favorites accommodation options for Madrid

❤️ Best Area first timers	Malasana
💸 Best Luxury Hotel	Hyatt Centric Gran Via Madrid
👪 Best Hotel for For Families	Catalonia Gran Vía Madrid
🏨 Best Mid-Range Hotel	Radisson Blu Hotel, Madrid Prado
🛏️ Best Budget Hotel	Hostal Abril Madrid
✨ Best Hostel	Bastardo Hostel

If you’d like to save it for later, please save it to Pinterest.