Where to Stay in Madrid: Complete Guide for First Timers

Wondering where to stay in Madrid? This guide offers assistance. Within this guide, we’ll provide our selections for the four best regions to stay in Madrid, together with the benefits and drawbacks of each, a few of our favorite spots in every neighborhood, and some specific accommodations that caught our attention as we reviewed the options.

We’re not going to solve gentrification and the housing crisis in Seattle in this guide, but you should know that the unhoused individuals you see around the city are largely harmless.

To be completely transparent, I’m not entirely certain what expectations we held when we arrived in Madrid. I had heard from individuals we`d met during our travels that it`s the most “Spanish” city in the country (whatever that implies), and that it is basically just a somewhat dull large city.

When we arrived in Madrid after spending a week in Barcelona, we found the biggest city in Spain, which is also the capital, had managed to retain its charm despite its large size.

Whatever expectations we held in our minds going into Madrid, it`s safe to say that the city surpassed them. Even though it’s massive, it’s walkable. Even though it’s an expensive city, it’s replete with great bars, restaurants, and coffee shops to discover.

Even though it has sizable, multi-lane avenues and lots of traffic, it has areas where you’ll discover narrow, winding roads with charming open plazas.

In this guide, we’ll discuss four excellent Madrid neighborhoods that we believe would make a good home base. We’ll also provide the pros and cons for each to allow you to find the best area for your specific trip, and some of our favorite spots in each neighborhood to help you discover a new location or two to add to your Madrid itinerary

Planning a trip to Spain? We have a comprehensive itinerary for Spain plus guides to Barcelona,Granada, and Seville to assist with organizing an amazing visit!

Disclaimer: Some of the links in this post, like hotel links, are affiliate links, meaning at no additional cost to you, we make a little bit of money if you click through and book. That being said, we would never recommend something to you that we don’t stand behind 100%.

Where to Stay in Madrid: The 4 Best Places to Stay for First Timers

Now, let’s get into our selections for the best areas to stay in Madrid.

Obviously, our preferences might be different than yours, which is why we’ve got a detailed mini travel guide for each neighborhood below.

You’ll find an outline of the area, our perspective on the advantages and disadvantages of staying there, and some highlights that we enjoyed in the neighborhood – think coffee shops, eateries, parks, and more.

Then, we’ll share some places to stay that stood out to us as we were browsing available options. We’ll try to offer different options for a range of budgets and styles – a boutique hotel, a mid-range hotel, an apartment-hotel, and a hostel.

Don’t have time to read the detailed guide below? Here’s a brief summary (though we’d recommend that you read the detailed guide for the neighborhood you eventually land on!).

• If you’re looking for Madrid`s most vibrant neighborhood (in our personal assessment), stay in Malasaña.Not only does this area have excellent dining and nightlife venues, it’s also very centrally located and walkable to virtually all of Madrid`s key attractions and points of interest.
• Experiencing life as a local in Madrid, choosing La Latina or Barrio de las Letras is advised. Full of energy, we found ourselves in La Latina repeatedly over the course of our Madrid trip. The area is home to lots of vibrant plazas with locals and tourists eating and drinking to their heart’s content. Plus, narrow winding streets that are endlessly charming, a good selection of bars and restaurants, and La Latina metro station right in the heart of the neighborhood to connect to the rest of the city.

With that intro out of the way, I`ll now guide you through our neighborhood recommendations in more nuanced detail within Madrid.

Where We’ve Stayed in Madrid

It probably makes the most sense to start with where we have personally lodged in Madrid.

For our initial weeklong remain in Madrid, we wanted two things. A core area with easy access to the train station, because we were going to be doing a couple of day trips, and a kitchen.

That led us to search for apartments, eventually settling in Sol / Gran Vía.

In fact, we stayed right on Gran Vía, which had its advantages and disadvantages. It was walkable to everywhere we wanted to go, and it was literally across the street from the metro.

However, it`s essentially the center of Madrid, with all sorts of big chain shops like H&M and Zara lining the wide, modern avenue, and it lacks the charm that we found in some of Madrid`s other neighborhoods.

We stayed in an apartment at Smartrental Collection Gran Vía Centric, and it had a kitchen, a stylish interior design, space to spread out somewhat and unwind, all in a prime location.

However, there was one major issue – a rooftop club began blasting electronic music around noon, continuing until the early hours of the morning. Not ideal for two people with a 9:00 pm bedtime!

So while the apartment itself was agreeable and the location was quite good – as central as possible, truly – we probably wouldn’t remain there again.

Our next visit to Madrid will see us lodging in the nearby region of Malasaña at limehome Madrid Calle de la Madera if we desire an apartment containing a kitchen (if not, we’d select ). We stayed in one of limehome’s properties in Granada and greatly appreciated the experience

Malasaña: Our Top Pick for Coolest Area in Madrid

Malasaña – our favorite part of Madrid’s city center – lies just north of Gran Vía and extends further north, becoming more residential the further one travels.

Just off of Gran Vía, it’s lively, full of bars and restaurants that are busy starting in the late afternoon and continuing into the early morning hours.

We repeatedly found ourselves in this charming neighborhood – sometimes on multiple occasions in a single day – over the course of our week in Madrid.

The number of coffee shops, bars, eateries, and boutiques is unrivaled in any other neighborhood in Madrid, at least based on our experience.

Being just off of Gran Vía, it’s also in a centralized location that will put you within walking distance of most places in Madrid.

Typically, the hip and charming neighborhoods discussed in city guides – like Trastevere or Testaccio in Rome, Capitol Hill or Ballard in Seattle, and Gràcia in Barcelona – are not situated as centrally as preferred. However, they are worth the tradeoff to lodge in a cooler neighborhood versus some central alternatives with less character.

In Malasaña, you genuinely get the best of both worlds. You’re central and within walking distance of just about everything you’ll want to see over the course of your Madrid itinerary, and you’re also smack dab in the middle of the coolest neighborhood in central Madrid.

The only trade-off is that it’s usually a bit noisier and lively than other regions, with individuals packing the plazas, bars, and restaurants at all hours.

However, it is certainly possible to find more secluded areas where you`ll be able to get a full night of undisturbed sleep, if that is what you prefer.

What about Chueca?

Chueca is the neighborhood directly to the east, and as I walked between the two regions it was truly difficult to discern a solid boundary separating them.

They blend together, though as you draw closer to where the boundary is intended to be, you’ll start to notice increasingly more rainbow flags – Chueca is one of the more LBGTQ+ focused areas in Madrid, and also a nightlife hub (the two tend to usually go hand-in-hand – see: Capitol Hill in Seattle and the Castro in ).

For the intents of this guide, we see insufficient difference between the two to warrant entirely separate sections.

Pros and Cons of Staying in Malasaña

Pros: 

• Concurrently Hip and Enchanting. Malasaña possesses a somewhat hipster personality, and an abundance of charm. Every few blocks, you’ll happen upon an open plaza with individuals relaxing in the sunlight, sipping coffee or a beverage, observing the world pass by. Public spaces within cities where people congregate is something that Spain (and Italy, and Colombia, and Mexico…) do truly well, and we’re here for additional of it at home in the US.
• Unequaled Diversity of Locations to Eat and Drink. Amongst those charming plazas is an assortment of shops, bars, and restaurants providing nearly every kind of cuisine or beverage under the sun. Authentic Venezuelan, Japanese, Italian – nearly every region of the world is represented here.
• Centrally located. It’s just north of Gran Vía, the main east-west artery in Madrid. You’ll be within walking distance of attractions like the Prado museum, Royal Palace, and La Latina neighborhood, allowing you to explore most places on foot.

Cons: 

• Noisy nights. Parts of the neighborhood are home to some of Madrid`s most lively nightspots, and as expected, it’s far from tranquil. Walking through the streets after dark, locals commonly packed the paths wall-to-wall. Look farther north or west for a calmer locale.

The Best Places to Stay in Malasaña

Here are some places to stay in Malasaña that caught our eye as we were perusing the options.

7 Islas Hotel: Charming & Stylish Hotel

If dietary restrictions hadn`t required a kitchen, we might have chosen to reside in this stylish boutique hotel just a few blocks north of Gran Vía in the southern end of Malasaña.

There’s an art gallery on the ground floor, which is perhaps a little straightforward, but we’re amenable because of the elegant, minimalist decor within the surprisingly spacious rooms.

Originally owned by a family, the hotel went through a full remodeling in 2012 led by the granddaughters of the original owner and was transformed into what it is today.

Despite the commercialization of most hotels in major cities around the world over the past couple decades, this hotel is still run by those same three granddaughters, which we think is something worth mentioning and celebrating.

Rooms offer a simple yet stylish and comfortable design with an industrial-chic theme including standalone light fixtures without shades.

They also have a penthouse apartment with additional living space, nearly double the size of standard rooms, plus a private terrace including a hammock to relax in the Spanish sun.

Onsite, there’s a bar/cafe serving specialty coffee and cocktails (along with a beer brewed specially for this hotel) throughout the day, but you’ll definitely want to branch out outside the hotel to explore the surrounding neighborhood, which is full of amazing bars and restaurants.

IBIS Madrid Centro: A Nice Affordable Hotel

This low-cost hotel is located on the northern edge of the neighborhood, implying that it`s somewhat further from most of the places you`ll be touring on your Madrid itinerary.

It is just a couple of blocks away from Plaza del Dos de Mayo,though in close proximity .

However, the cost reflects that less central area, which is why it’s here on this rundown. There are a couple of metro stations within walking distance, depending on which line you need to catch.

IBIS Hotels provide basic but consistent accommodation, which is a positive quality to have in a hotel. Rooms offer fundamental comfort, with options for double beds and twin beds, depending on who you’re traveling with.

limehome Madrid Calle de la Madera: Stylish Serviced Apartments in a Fantastic Location

Splendid Penthouse with Panoramic Views in Central La Candelaria!: The ideal lodging in La Candelaria for parties of 4-6. It includes two bedrooms, a fully equipped kitchen, and abundant living space. Moreover, the huge windows provide picturesque perspectives of the city and a remodeled kitchen comprising modern appliances.

For context, Matt has Celiac Disease, which makes dining out sometimes difficult and means we try to always have access to a kitchen facility so that we have the option to prepare meals for ourselves.

This property could effectively be described as an apartment hotel. Instead of being a lone apartment leased by an individual or investment group, it operates more akin to a hotel where the rooms come furnished as accommodations with conveniences like living spaces and kitchens.

That typically means you’ll have more space to spread out, which we appreciate given we’re often doing work and writing when we’re traveling, which is not particularly pleasant in a cramped hotel room with only a bed to sit on.

There are a range of apartment options here, from studio units (choose between small, medium, and large depending on your needs and preferences) and one-bedroom alternatives, again with different sizes and designs.

All lodging here incorporate full kitchen amenities (like coffee and tea supplies), air conditioning, and laundry machines. Plus more modern conveniences such as smart televisions and contactless check-in and check-out procedures.

The flats are fashionable and practical, and would make a superb home base for exploring Madrid in one of the city’s best neighborhoods.

Bastardo Hostel: An Upscale Hotel / Hostel Hybrid

When we traveled over recent years, we came to appreciate the idea of a “boutique hostel.” The cause? We feel like they provide all the advantages of a boutique hotel as well as the societal aspects that attract people to hostels.

Selecting a private room in the upscale lodging situated in the heart of the neighborhood would be an ideal choice if you`re seeking an accommodation that is more affordable than a hotel but quieter with more solitude than remaining in a communal area. This upscale hostel in the center of the locale will satisfy those criteria.

If you’re truly on a tight budget, they also have dormitories, but we’re a little too old for that (and more importantly, we value our rest too much).

There are a variety of communal areas to enjoy, including a sunny terrace and light-filled common room on the ground floor.

The private rooms are essentially hotel rooms, some with terraces, some with different bed configurations better suited for families or couples, and all offered at an affordable rate.

Barrio La Latina: Local Vibes + Great Food and Drinks 

If we had to pick a second-favorite neighborhood after Malasaña, upon crossing its borders from Plaza Mayor our eyes lit up at La Latina.

Generally, places containing plazas where local children run around tend to be neighborhoods that we like more.

There are over 1,000 landmarks in Los Angeles. More than 1,000 Historic-Cultural Monuments have been designated by the City of Los Angeles.

She earned the name “La Latina” because of her profound grasp of Latin, and this neighborhood bears her name due to her contributions to the local community and city, where she established a hospital and was one of the most prominent women in public service at that time.

There are a couple things we really took pleasure in about La Latina.

First, if you want small plates, go to Calle Cava Baja, which is famously lined with small plate bars on either side of the street for several blocks (more on this in the “highlights” section below).

Secondly, the bustling plazas. We visited multiple times at various points throughout the day – early morning, noon, and late afternoon – and at all those times, the open plazas were full of people either getting their morning coffee with friends, taking a break before continuing about their day, or eating tapas and drinking wine, beer, and vermouth in the warm sun.

Of course, it deserves mentioning here that this neighborhood, like most areas in Madrid and around the world, has experienced rising rental prices displace local families to the benefit of temporary accommodations intended for visitors.

Pros and Cons of Staying in La Latina

Pros: 

• The area attracts consistently due to its charm emanating endlessly, with abundant energy and people mingling at any hour. Tapas bars spilling onto streets. Open plazas where people sit conversing or resting after leaving kids at school. Historic streets wind narrowly, giving the impression of a maze.
• Central Location. Another benefit of La Latina is its walkability to most of the city. You’ll be able to walk to El Prado and the Royal Palace, and if walking isn`t preferable, there’s a very convenient metro station right in the heart of the neighborhood.

Cons: 

• Limited Lodging Options. As this locale is a bit more residential than others covered here, accommodations aren`t as plentiful. Since renting homes through services like Airbnb in Madrid has exacerbated a housing crisis where lifelong residents can no longer afford to live, choices are fairly restricted. Still, the area has some neat places to stay, so do not dismiss it entirely!
• Busy and Noisy. This area is exceptionally popular, and as a result can be loud and bustling with vigorous activity, particularly on weekends and later hours.

The Best Places to Stay in La Latina

The following five lodging selections caught our attention during our search for accommodation options in the neighborhood.

We’ve selected places catering to all budgets and styles – from luxurious boutique hotels to affordable hostels.

Plus, apartments with a kitchen are often helpful when we`re traveling (Matt has Celiac Disease and needs a gluten free diet – check our guide on eating gluten free in Madrid!).

Posada del León de Oro: A Boutique Hotel in a Great Location

This boutique hotelis situated at the northern end of Calle Cava Baja, meaning you’re within approximately three minutes` walk of being right in the heart of the main attractions. Additionally, you can easily walk north to locations like Plaza Mayor. It`s hard to imagine a more convenient spot.”

It’s in a 19th Century building that has been lovingly restored, and the 17 rooms are modern and elegant, though not in a stuffy way at all. It’s a relatively small hotel, which provides a nice alternative to some of the larger mega-hotels in Spain’s capital.

L&H La Latina Selection: A Nice Mid-Range Hotel

This mid-priced hotel establishment is toward the southern edge of the neighborhood, which signifies it will be notably more relaxed and tranquil than the locations up near Calle Cava Baja.

The rooms are well-arranged, and more importantly, have a microwave, mini fridge, and stovetop in the room! Plus, a Nespresso machine for your morning coffee.

They furnish standard hotel rooms in various configurations and sizes, plus a couple of deluxe attic rooms with a private terrace, and suites providing somewhat more space, such as a living area.

The decor is stylish and simple, with big gray headboards and two pieces of artwork hanging above the bed, and large rainfall showers.

They also provide vehicle parking, which is beneficial if you’ll be traveling in Spain by automobile.

Casa du Soleil: A Small, Stylish B&B

Technically this place is just outside the eastern border of La Latina, but it’s within walking distance of La Latina metro station, so we’re including it because we think guests would enjoy staying there.

Casa du Soleil (oddly identified by a French rather than Spanish name given its décor draws from Mediterranean styles) opened in 2021 and its contemporary design indicates its recent establishment. It channels a bohemian-chic aesthetic, to use one description.

They only provide double rooms, which likely makes it not the best pick for families or groups traveling together. A communal kitchen is available for you to utilize, where you`ll find complimentary coffee and plenty of common areas for relaxing (or getting some work done).

Apartments: Apartamentos Cava Baja

If you’re searching for comfortable apartment accommodations in a prime locale, you can’t go wrong with these apartments located on Calle Cava Baja at its northern end, meaning you’re two or three blocks from both Plaza Mayor and the heart of La Latina.

The apartments are sizable, at least by our San Francisco standards, and they have both one and two bedroom options for different group sizes.

Each apartment has a slightly different layout and configuration, though all have full kitchens with nice appliances (full size fridge and dishwashers) and Nespresso machines.

Overall, if you’re looking for an apartment in Madrid, this is at the top of our list of considerations.

Upscale Hostel: The Hat

We had this stylish eco-lodging reserved for our stay in Madrid at one point, but we weren’t certain whether the common kitchen would be accessible when we were there, so we ultimately changed to an apartment with a kitchen.

It is worthwhile acknowledging the lodging`s basic cooking amenities – a microwave and kettle sans stove – if that is a factor in your decision.

On our next visit, we`d prioritize staying at this accommodating location.

We’re all about the boutique hostel trend that is currently taking popular cities around the globe by storm.

They amalgamate the convenient, stylish quarters found at a boutique hotel with the social elements experienced when dwelling at a hostel, at a fairly affordable price typically.

The Hat is one of the nicest hostels we’ve encountered during our exhaustive search for the perfect lodging in cities all around the world. It’s located on the northern fringe of the neighborhood, bordering the area surrounding Puerta del Sol, which presents a wonderfully centralized position for exploring Madrid.

Accommodation options include dormitories (some reserved just for females) and private rooms essentially serving as hotel rooms.

You’ll also have access to their extensive breakfast, the rooftop bar, and their various common areas that all seem to be filled with natural light.

Barrio de las Letras: Central and Romantic

Barrio de las Letras obtained its name due to famous writers having lived in the neighborhood throughout history. It is centrally located – nestled between Puerta del Sol and the Prado Museum – but possesses a distinct atmosphere compared to the more commercial parts of town immediately surrounding it.

Las Huertas is the main street, running west to east towards the Prado and Parque El Retiro, and the side streets branching off contain excellent restaurants and bars.

Plaza Santa Ana serves as the central area of the neighborhood, providing an open space amongst the dense housing, bars, and restaurants.

The streets of Barrio de las Letras are adorned with gold letters spelling out famous passages and quotes from the many writers who called this area home.

As you wander through the streets, you’ll find sculptures representing Cervantes and famous poet Federico García Lorca, among others.

This neighborhood is also surrounding or close in proximity to various cultural gems, from the highly esteemed Prado Museum and the notable Reina Sofía – two of the premier museums in Madrid – to the CaixaForum Madrid, which immediately caught our attention as we strolled by on a cold November morning thanks to its architecturally impressive garden wall that ascends numerous floors blanketed with dense greenery, even in the late fall.

Pros and Cons of Staying in Barrio de las Letras

Pros: 

• Stuffed With Bars And Eateries. Along with the other neighborhoods on this list, this region is a wonderful place to explore for food lovers. The moral of the story appears to be that residents of Madrid love food, which we concur with.
• Center of Culture. From renowned art museums to music venues and statues of famous Spanish literary heroes, this neighborhood is the place to be for art lovers. You’ll be near the finest art in Madrid, spanning from famous 15th Century paintings to modern day musical performances, and virtually everything in between.
• Highly Central. Walkable to the art museums and El Retiro park, and an easy trip away from the Sol metro station (near Puerta del Sol), you`ll be very well connected to the rest of the city.

We have little negative to note. If being picky, one might say lodging options and prices are somewhat limited compared to other areas, but that seems a minor criticism.

The Best Places to Stay in Barrio de las Letras

Four places of temporary residence that stood out during our browsing of places to stay in the neighborhood are:

Room Mate Alba: A Nice Boutique Hotel

Room Mate is a fairly well known hotel brand that we’ve found all across Spain and the rest of Europe. Not as well recognized as, say, Hilton or Marriott, but they have a presence on multiple continents.

They feature an assortment of hotels and apartments worldwide, and this particular lodging – Room Mate Alba – fits squarely in the hotel category. And it truly is a nice one.

Rooms are relatively spacious, starting with the standard rooms exceeding 200 square feet and increasing in size from there. Rooms are beautifully decorated, particularly the bathrooms with their intricate tilework that caught our attention.

There is also an onsite gym and a daily breakfast buffet available until noon for an additional cost.

The hotel’s location could not be better. It lies on Calle de las Huertas, approximately four blocks west of the Prado Museum, and within a couple blocks of the neighborhood`s culinary and drinking spots as well as the Antón Martín metro station.

One Shot Prado 23: A Stylish & Affordable Hotel

One Shot Prado 23represents a reasonably priced lodging option in a magnificent location at the northeastern corner of Barrio de las Letras. It`s directly on Calle del Prado, meaning you`re just a few blocks away from the famous museum, along with other treasures in the neighborhood like the statue of Miguel de Cervantes at the nearby Plaza de las Cortes.

They’re also within 5-10 minutes of three different metro stops, so you’ll be able to move around the city as required.

The economy rooms – which can be outfitted with two single beds or one double bed – are a fantastic value if you’re not too concerned about space and you’ll be spending most of your time outside of the hotel room.

If, like us, you’ll be spending some time in the hotel getting some work done, upgrade to one of the bigger rooms (standard and above), which have more space and, importantly, a desk.

Some rooms have balconies overlooking Calle del Prado, which are both a bit more spacious and a bit more pricey.

They have an underground parking garage if you happen to be driving, which isn’t something that every place in Madrid has.

Apartamentos Matute 11: Classy Apartments

It`s reasonable that habituating inside a hotel for extended periods exceeding a night or two could grow tiresome.

We enjoy preparing meals, and residing in an apartment allows us to do so while experiencing aspects of daily local life as we shop for groceries or ingredients at markets, try communicating in the native language (in this case in Madrid, that largely equates to frequently hearing the expression “vale vale” which roughly translates as a versatile acknowledgment), and cooking up straightforward dishes.

In Barrio de las Letras, our recommendation would be these classy apartments located at the southern end of the neighborhood within walking distance of a subway station that can be found .

They have a variety of apartment types – studio, with one bedroom, and two bedroom – all with differing layouts, some which are clearly superior to others (though there`s no way to know which one you`ll receive).

Accommodations are straightforward but stylish, with hardwood floors or tile (carpet is kind of unpleasant sometimes) and fairly minimal artistic pieces on the walls.

While the apartments have a stovetop, there is no oven (although the microwaves do double as convection ovens, which we’ve seen before but haven’t quite figured out just yet their complete functions).

If you`re seeking an apartment providing more space and kitchen access while also being well-connected to the city – both on foot and via metro – these units would make an excellent choice.

Sol / Gran Vía: Great Central Location (+ Where We Stayed)

This neighborhood focuses more on location over charm. Truthfully, we would say it has the least character of all the neighborhoods on this list.

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To put it another way, it isn`t the most stylish neighborhood but it is highly functional.

We stayed here, directly on Gran Vía, which is about as central as possible. We were within walking distance (15 minutes or less) to everywhere we wanted to go in Madrid, and as a result we ended up using the metro much less than we had initially planned.

It’s also well-connected to the train station (Atocha train station, which is likely where you’ll arrive if traveling to Madrid by train) and airport thanks to the nearby “Sol” regional train stop.

It’s a single stop and 2.20 Euros to the train station (regional train transfers to or from are commonly included with long distance tickets), making for an easy journey to the airport.

Pros and Cons of Staying in Sol / Gran Vía

Pros: 

• Very Central Location. Puerta del Sol and Plaza Mayor are in the neighborhood, and just outside of it you’ll find La Latina (excellent small plates and full of charm), Malasaña, and Parque el Retiro, among other places.
• Advantageous Acquisitions. If retail therapy calls, this locale answers. An incredible assortment of stores peddle apparel, electronics, and all imaginable items. Denim or handcrafted espadrilles await shoppers.
• Many Lodging Options. As expected, there are quite a few places available in this area, from hotels to apartments, offering different styles and price points for visitors.

Cons: 

• Comparatively Less Lively. As one crosses Gran Vía from Malasaña, the charming locally-owned boutiques give way to chain stores found worldwide. In place of a wide variety of small eateries, establishments like Five Guys and Burger King appear. This is a generalization, of course, but it lacks great charm. One will likely spend most of their time outside of the neighborhood, which isn`t necessarily poor given easy walking access anywhere. I will say the southern end around Plaza Mayor and beyond proves a bit more fun and charming.

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