Where To Stay In Madrid Spain: Our Madrid Accommodation Guide

Where To Stay In Madrid Spain

There are so many amazing options for places to stay in Madrid, from beautiful hotels to diverse neighbourhoods. After spending one month in Madrid and exploring the different areas, here are our picks for best Madrid hotels and where to stay in Madrid Spain…

Where To Stay In Madrid?
Booking Accommodation In Madrid
Accommodation Guides

  • Absolute Splurge
  • Luxury For Less
  • Hotels In Madrid Under $300/night
  • Hotels In Madrid Under $250/night

Where To Stay In Madrid? Madrid Neighbourhood Guide

Choosing what area to stay in Madrid is an important decision to have the best trip. Madrid has some amazing and diverse neighbourhoods that are all worth exploring. So here are the best neighbourhoods to stay in Madrid in my opinion.

Madrid Streets

The best area to stay in Madrid is the city centre. However, there are lots of different neighbourhoods and districts in Madrid city centre. So where to stay in central Madrid? The busiest and most touristy neighbourhoods in Madrid would be the areas around Sol, Gran Via and Palacio. Just north of Gran Via you have Malasana and Chueca. Salamanca is near Chueca and just north of Retiro Park. To the south of Sol, you have La Latina, Lavapies and Barrio de las Letras (Huertas). All of these neighbourhoods are great places to stay in Madrid, but the best choice will depend on what you personally want out of your trip to Madrid.

Sol, Gran Via and Palacio

Sol is one of the busiest and most central areas in Madrid. A great area to stay if you want to be close to everything and very central, but it can also be pretty touristy. Gran Via is one of the main streets in Madrid, filled with shops like Zara and H & M and department stores. It’s also very central, but again, can be on the touristy side. Palacio is where you will find Plaza Mayor and the Royal Palace of Madrid.

Why stay here? These areas would be my pick for where to stay in Madrid for one night or a very short stay. They all have the upside of being very central, with the downside of being touristy.

Malasana and Chueca

Malasana is one of my absolute favourite neighbourhoods in Madrid. It’s a little bit alternative and has great cafes and unique shops. But it’s more the feeling you get when you’re there, there’s something that feels very local and cosy about it.

Chueca is Malasanas neighbour, which is another trendy area, known as the LGBTQ neighbourhood of Madrid. It’s home to the San Anton Market and many restaurants and shops.

Why stay here? These areas are very vibrant yet have a residential and more local feel about them. They have great shops and restaurants, whilst also being really central, just north of the Gran Via. They are also both some of the best areas to stay in Madrid for nightlife.


Just north of Retiro Park, Salamanca is one of the best areas in Madrid for high-end shopping. It’s also home to some great restaurants and food options.

Why stay here? Salamanca and the area near Retiro Park are still central whilst being a little removed from the touristy and busy areas like Sol. This is a great pick for where to stay in Madrid with family or for couples.

La Latina 

Home to El Rastro, the very large and busy Sunday Flea Market, La Latina has a lot to offer. It’s filled with tapas bars, particularly on Cava Baja, and is a great place to go for a drink.

Why stay here? La Latina will give you that traditional feeling, it’s still quite central and is a great place to stay in Madrid for food and nightlife.

Barrio de las Letras (Huertas)

Barrio de las Letras, otherwise known as the literary quarter, as it was once home to many famous writers. This area was another one of my favourite neighbourhoods in Madrid, in particular, the street Calle Leon. It has beautiful old buildings, great restaurants and bars, it’s very central and also close to the three main museums of Madrid, otherwise known as the Golden Triangle.

Why stay here? Barrio de las Letras is great for people who want to be pretty central yet still with a neighbourhood feeling, close to great food, bars and museums.


A neighbour to La Latina, and just south of Sol and Barrio de las Letras, Lavapies is a multi-cultural neighbourhood. Lavapies is an area where many immigrants from Africa and the middle-east reside. It’s also a great place to get ethnic and affordable food, and there are also lots of bars around. Lavapies is also quite close to the Reina Sofia Museum and Atocha train station. And it’s also nearby the Anton Martin Markets, which is one of my favourite markets in Madrid.

Why stay here? Lavapies is a vibrant and diverse neighbourhood, great for ethnic food, bars and nightlife and a central location. It’s also a great location for staying in an Airbnb with a kitchen, as there is a huge Carrefour supermarket and Anton Martin market in the neighbourhood. It’s also a great location if you plan on doing a day trip to Toledo, as this can be done from Atocha station.

Booking Accommodation In Madrid

Plaza Mayor Madrid

When booking accommodation in Madrid, there are two main websites that I use.


Booking.com has some of the best prices and a large number of accommodation options available. We love using it for our travels.


I love seeing what’s available from Airbnb, from getting to stay with a local host or having your own place to yourself, there’s something for everyone.

Sign up here to get $50 credit towards your first Airbnb stay

Madrid Accommodation Guides

We have put together a guide of the best places to stay in Madrid Spain, from our experience of our time there and research. This guide includes 5 star and luxury hotels in Madrid, Boutique hotels in Madrid and hotels in Madrid city centre.

Please note: Prices below were based on peak season, per night and are in Australian Dollars. Prices were correct at the time of publishing this article.

Absolute Splurge: Luxury Accommodation In Madrid

Hotel Santo Mauro, Autograph Collection | $524 | Check Prices

Santo Mauro Hotel Madrid

Photo credit: Santo Mauro Hotel

Westin Palace Hotel | $514 | Check Prices

Westin Palace Madrid

Photo credit: Westin Palace Madrid

Hotel Único Madrid | $412 | Check Prices

Hotel Unico Madrid

Photo credit: Hotel Unico Madrid

Hotel Villa Magna | $832 | Check Prices

Hotel Villa Magna Madrid

Photo credit: Hotel Villa Magna

Luxury For Less

The Principal Madrid | $374 | Check Prices

The Principal Madrid

Photo credit: The Principal Madrid

DoubleTree by Hilton Madrid-Prado | $363 | Check Prices

Barceló Torre de Madrid | $318 | Check Prices

URSO Hotel & Spa | $307 | Check Prices

Hotels In Madrid under $300/night

Only YOU Boutique Hotel Madrid | $282 | Check Prices

Only You Boutique Hotel Madrid

Vincci The Mint | $297 | Check Prices

NH Collection Madrid Colon | $269 | Check Prices

Dear Hotel Madrid | $256 | Check Prices

Hotels In Madrid under $250/night

TÓTEM Madrid | $248 | Check Prices

Totem Madrid

Photo credit: Totem Madrid

NH Collection Madrid Suecia | $230 | Check Prices

7 Islas Hotel |$166 | Check Prices

We will continually update this post to make sure we’re recommending the best Hotels in Madrid, to help you choose where to stay in Madrid.

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What’s your pick of where to stay in Madrid? Let us know if you have any questions in the comments below…

Please note that some of the links above are affiliate links, which means that at no extra cost to you, we may make a small commission if you decide to book a hotel.

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