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Where to Stay in Madrid: Editor’s Picks

8 Best Neighborhoods in Madrid

Panoramic View over Madrid Spain - Where To Stay in Madrid Spain - Best Neighborhoods in Madrid for Tourists
Where To Stay in Madrid – Best Neighborhoods in Madrid for Tourists
  • Centro
  • Malasaña Universidad
  • Barrio de La Latina
  • Literary Quarter
  • Lavapiés
  • Chueca
  • Retiro
  • Salamanca


Centro, as the name indicates, is the heart of Madrid. This area is one of the best neighborhoods in Madrid to stay in, if you want to explore mainly on foot and want to be right in the middle of the city, close to the main attractions and sights of Madrid. 

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Panoramic aerial view of Gran Via, main shopping street in Madrid, capital of Spain, Europe.
Gran Via, main shopping street in Madrid


Malasaña is known for its nightlife, boutiques and alternative spirit. In the 80s, this was the heart of the counter culture movement of the city. You can still feel this vibe and even if you don’t stay here, you should definitely go explore this area. 

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La Latina

This is the historic old town of central Madrid. In this Madrid neighborhood, you will find narrow streets and spacious squares lined with tapas bars. In this area of Madrid, you will find mainly midrange and budget hotels. 

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Literary Quarter

The Literary Quarter is perfect for art lovers and perfect if you want to explore the Golden Triangle of Art in Madrid: The Prado Museum, Reina Sofia Museum, and Thyssen-Bornemisza Museum. You will also enjoy the artsy atmosphere of this neighborhood with its many boutiques, galleries, and restaurants. 

Image of Madrid skyline with Santa Maria la Real de La Almudena Cathedral and the Royal Palace during sunset.
Santa Maria la Real de La Almudena Cathedral and the Royal Palace in Madrid Spain


Lavapiés is a vibrant neighborhood that is known for its international flair. Many immigrants and expats live in this neighborhood and you will find shops and delicacies from around the world. 


This Madrid neighborhood is the hipster part of town. You will find great nightlife options and some of the hippest restaurants in the city. 

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Parks – Museums – Grand Hotels: This is Retiro Madrid. This is the place to be, if you are looking for quiet and calm at night, as most of the hustle and bustle dies down after the workday ends. 

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Crystal Palace, a historic glass house in front of a lake in Retiro Park on a snowy day, Madrid Spain
Crystal Palace in Retiro Park, Madrid Spain


This is the upscale neighborhood in Madrid, where you find many luxury hotels, fine dining restaurants, and exclusive boutiques. Centrally located, you will find many of the main attractions in Madrid just a few metro stops away.

Find Hotels in Salamanca here>>

Best Hotels in Madrid

Madrid, the capital of and largest city in Spain, offers travelers a myriad of hotel options when choosing where to stay. Organized by star rankings, our hotel recommendations are handpicked from five-star hotels to budget hotels and B&Bs. 

We chose hotels that are close to the most important sights and have given special attention to hotels offering modern amenities, such as high-speed WiFi. Note that few hotels include breakfast in the room price in Madrid. Here are our hotel recommendations to help you choose where to stay in Madrid.

5-Star Hotels in Madrid

The Westin Palace
Centrally located near the Prado Museum, the building of this Starwood hotel was commissioned by King Alfonso XIII in 1912, and it seamlessly integrates modern conveniences with Old World charm.

The building is crowned with a massive glass dome, and the 467 rooms and suites feature antique furniture, a comfortable Westin Heavenly Bed®, marble floors, and WiFi (at a charge). Amenities include a fitness center, business center, two restaurants, The Palace Bar, and one café. The staff is knowledgeable and friendly. It is a true 5-star hotel by international standards.
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 Melia Madrid Princesa
Located near Madrid’s business center and just a ten-minute walk from Plaza España, this Meliá hotel is good for business or recreational travelers. Modern and chic, the rooms in this hotel were renovated in 2008, and each comes with individually controlled heating and A/C, satellite TV, internet (at a charge), a nightlight for reading, a hairdryer, a mini bar, and a safe. For true VIP treatment, stay in The Level; a portion of the hotel with elevated services, such as an independent reception and private breakfast room.

The hotel’s amenities include a gym, swimming pool, spa (for a charge), business center, and UNO by Meliá Madrid Princesa. Inside Uno by Meliá Madrid Princesa guests will find a bar with a snack menu and “A la Carte” restaurant, which features Mediterranean cuisine.
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4-Star Hotels in Madrid

Hotel Atlantico
Located in a gorgeous building in the heart of the city on Gran Via, this hotel features Victorian décor, and the staff is professional and friendly. All rooms come with free internet (either WiFi or high speed internet connection), central heating, individually controlled A/C, a mini bar, a hairdryer, a bathrobe, slippers, and a safe.

There are two cafes, one of which is on the 9th floor, supplying excellent views of Madrid. Guests especially sensitive to noise should request a room away from Gran Via or on the higher floors.
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Hotel Preciados
This hotel offers free mini bar beverages (soft drinks) and free WiFi, and it is centrally located on a great shopping street, the Calle Precaidos. The hotel is within walking distance of most major sights, such as the Plaza Mayor and Prado Museum, and it is ideal for travelers visiting Madrid for a short period.

All rooms come with individualized heating and A/C, a safe, plasma TV, hairdryer, and soundproof windows. Rooms are clean and functional, featuring modern décor. Amenities include an onsite restaurant, 24-hour reception, and laundry service.
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Me Madrid Reina Victoria
This Meliá hotel shows off its uber-modern style, and it has a great location. Every room features a large plasma TV, free WiFi, fine linen sheets, a feather-top mattress, and bathroom products by Avena. To get the most luxurious experience, stay in the hotel’s premium suites; called The Level, these rooms each feature an in-room spa and a separate living area.

Hotel amenities include the ME Restaurant & Lounge, a rooftop bar with panoramic views, a 24-hour gym, and a spa. The staff is professional and welcoming. This hotel is ideal for travelers looking for rooms decorated in high style. Budget travelers should be aware that there are less expensive options in the same area.
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3-Star Hotels in Madrid

Hotel Regina
After your stay, you may believe this hotel deserves four rather than three stars. Located right next to Puerta del Sol square, it provides excellent service and clean rooms for a good value.

The hotel was built in 1918 and was renovated as recently as 2010. Its 180 rooms each feature free WiFi, satellite TV, a safe, and a hairdryer, and the staff is friendly and professional. Amenities include an onsite restaurant.
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Ganivet Hotel
Almost every important tourist sight in Madrid is within walking distance of this budget-friendly hotel. It is very close to the Plaza Mayor and the Puerta de Toledo metro is just 150 meters from the hotel. Each of the 146 rooms comes with individualized A/C, satellite TV, a safe, and a hairdryer.

The contemporary decorated rooms are somewhat small but functional and very clean. WiFi is free throughout the hotel, but patchy in some rooms. Amenities include an onsite bar and restaurant. Ask for a room with a balcony. If particularly sensitive to noise, we recommend staying on a higher floor.
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Hotel Suites Viena
Despite the name, the Hotel Suites Viena is n the center of Madrid, near the Plaza España metro stop and the Templo de Debod. It is located in the Arguelles business area around Gran Via, Princesa, Ferraz and Paseo Rosales streets. Each of the hotel’s 57 suites includes a kitchen, A/C, mini bar, free WiFi (sometimes patchy), satellite TV and a safe. The rooms are modern and functional but nothing fancy.

This is a great option if you are staying for a few days and want to cook meals in. The hotel offers a buffet breakfast (for a charge), parking, and laundry service, and the staff is very hospitable. Smoking is permitted in certain areas, but pets are not allowed.
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Budget Hotels in Madrid

Hostal El Pilar
This hotel has one of the best locations in Madrid, positioned just a minute’s walk from Puerta del Sol. This “hostel” does not offer dorm-style rooms, and each of its 38 single and double rooms has a full bathroom, television, high-speed internet and free WiFi (sometimes patchy), a safe, and heating and A/C.

For your convenience there is an excursion desk, vending machines and luggage storage. The hostel is decorated in a homey, traditional style. The family that runs the hotel is very friendly. Because of its location, the hotel is sometimes noisy.
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Hostal Santo Domingo
This hotel is located in the middle of the city near the Callao metro stop, giving travelers quick access to Madrid’s shopping, nightlife, and sights. This “hostel” does not have dorm rooms; it provides single occupancy rooms and doubles (some come with Jacuzzis).

A family-friendly hotel, it features rooms with free WiFi, satellite TV, and heating and A/C for a great value. The décor is minimalist and stylish in a funky way. The hotel is very clean, and the staff is well trained and capable of helping you get the most out of Madrid. Note that some rooms are on the small side.
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Where to Stay in Madrid Spain was written by Mattie Bamman for

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