Wondering where to stay in Madrid? From the buzzing streets of Centro to the trendy bars of Malasaña, each district has its own unique charm that might just steal your heart.
Our Pick of the Best Hotels in Madrid
- 💎 Luxury: The Westin Palace Madrid
- 📍 Centre of Madrid: Hotel Vincci Centrum Madrid
- 🚶🏻♂️ For exploring Madrid: Mercure Madrid Centro
- 🌆 Best views: VP Plaza España Design
- 🥘 Best food: Relais & Châteaux Hotel Orfila
- 💸 Budget-friendly: Hostal La Zona
Let me take you on a journey through Madrid’s most exciting neighborhoods, sharing all those little secrets that guidebooks often miss. Whether you’re looking to wake up to the smell of fresh churros or dream of living like a true madrileño, I’ll help you find your perfect spot in Spain’s dazzling capital.
Quick Guide to the Best Places to Stay in Madrid
- 👀 For a first visit: Centro
- 🌃 For the nightlife: Malasaña
- 🌳 Combine Nature And Culture: Retiro
- 💎 For luxury and fashion lovers: Salamanca
- 🏩 Most Bohemian Area: Chueca
- 🏞 Away from the Tourist Crowds: Arganzuela
- 🇪🇸 To experience Spanish culture: Chamartin
- 💸 Madrid on a Budget: Tetuan
- 👪 Best for families: Chamberi
- 📖 For history and literature buffs: Barrio de las Letras
1. Centro – Coolest Neighborhood in Madrid for First-time Visitors
🌍 City Center: Puerta del Sol represents the historic soul of Madrid, where centuries-old architecture blends with modern city life. This central square marks Spain’s Kilometer Zero, from which all national roads begin. The plaza pulses with energy as street performers entertain crowds and locals rush through their daily routines.
🚇 Easy Travel: The Sol transport hub connects three metro lines and multiple bus routes. A convenient €8.40 day pass lets you explore the entire city network with unlimited rides. From here, you can easily reach Gran Via’s shopping district or walk to the Royal Palace in just 10 minutes.
Must-see places in Centro:
- Plaza Mayor – 17th-century square famous for its frescoed buildings
- Royal Palace – Europe’s largest working palace with 3,418 rooms
- Mercado de San Miguel – Cast-iron gourmet market from 1916
- Plaza de la Villa – Medieval square with noble mansions
- Gran Via – Art Deco architecture and entertainment district
🎯 Cultural Heritage: The Real Casa de Correos, with its famous clock tower, stands as the centerpiece of Puerta del Sol. This 18th-century building hosts Madrid’s New Year’s Eve celebrations, where thousands gather to follow the tradition of eating twelve grapes at midnight.
🍽️ Local Flavors: Traditional restaurants like Casa Botín, the world’s oldest restaurant operating since 1725, serve authentic Madrid cuisine. For quick bites, La Mallorquina offers the city’s finest pastries, while the surrounding tapas bars come alive during evening hours with locals enjoying small plates and conversation.
Where to stay in Centro?
Luxury hotels:
- The Westin Palace – a luxury 5-star hotel in a historic building next to the Prado Museum.
- Palacio de los Duques Gran Meliá – an elegant hotel in a 19th century building, next to the Plaza Mayor.
Medium price range:
- Room Mate Oscar – a modern designer hotel with a convenient location.
- Vincci Capitol – a comfortable 4-star hotel across from the Capitol Theater.
Inexpensive hotels:
- Hostal Santo Domingo – a simple hostel with friendly staff in the heart of Madrid.
- Hostal La Zona – an economical hotel with clean rooms and shared kitchens.
2. Malasaña – The Best Area to Stay in Madrid for Nightlife
💃🏻 District Character: This bohemian neighborhood emerged as Madrid’s cultural revolution hub during La Movida movement of the 1980s. Today, its narrow streets blend vintage charm with modern creativity, making it perfect for those seeking authentic local experiences.
2. Malasaña – The Creative Soul
🎨 District Character: Puerta del Sol represents the historic soul of Madrid, where centuries-old architecture blends with modern city life. This central square marks Spain’s Kilometer Zero, from which all national roads begin. The plaza pulses with energy as street performers entertain crowds and locals rush through their daily routines.
Must-visit spots in Malasaña:
- Plaza del 2 de Mayo – Historic square and neighborhood heart
- Calle Espíritu Santo – Famous tapas route
- Mercado de San Ildefonso – Modern food market
- Plaza de San Ildefonso – Evening social hub
🍽️ Food Scene: Start your culinary journey at Lamucca de Pez for artisanal pizzas, or try La Musa Malasaña for innovative Spanish fusion. For breakfast, EatMyTrip offers creative brunch options, while traditional tapas bars line the historic streets.
🎵 Nightlife: The neighborhood comes alive after 11 PM with venues like Café La Palma hosting live jazz (€10-15 cover). For vinyl enthusiasts, Madrid’s best record stores cluster around Calle del Espíritu Santo – check out Discos Babel and Deep Cuts. Weekend mornings bring the Conde Duque cultural center’s artisan market, where local craftspeople sell unique pieces from 10 AM to 3 PM.
Where to stay in Malasaña?
Luxury hotels:
- NH Collection Madrid Suecia – a luxury 5-star hotel with excellent service and convenient location.
- VP Plaza España Design – a modern premium hotel with panoramic views and stylish design.
Medium price range:
- Catalonia Las Cortes – a cozy hotel with good value for money.
- Hotel Meninas - Boutique Opera – a modern hotel with a great location and friendly staff.
Inexpensive hotels:
- Hostal Goyal Pizarro – an economical hostel with basic amenities, great for budget travelers.
- Fuencarral Apartments – a simple and inexpensive hostel in the heart of Madrid at a reasonable price.
3. Retiro – The Best Neighborhood in Madrid If You Want to Combine Nature And Culture
🌳 Park Essence: El Retiro Park spans 350 acres of manicured gardens, offering a peaceful escape from urban life. The park features the stunning Crystal Palace and Velázquez Palace, both hosting regular art exhibitions.
🎨 Art Zone: This area forms part of Madrid’s prestigious art district, with the world-renowned Prado Museum at its edge. The Royal Botanic Garden provides another serene escape with its diverse plant collections spanning four terraces.
🍽️ Local Dining: For exceptional Spanish cuisine near the park, try Castelados, known for its seasonal menu and regional specialties like salmorejo and merluza a la bilbaína. El Perro y la Galleta offers a dog-friendly atmosphere with traditional Spanish dishes and creative twists on classics.
🎯 Activities Guide: Rent bikes near Felipe IV gate (€8/hour) to explore the park’s 8.5 kilometers of paths. The lake offers rowing boats (€6/45 minutes) – best enjoyed during weekday mornings to avoid queues. Photography enthusiasts should visit the Rose Garden in May or June when over 4,000 roses bloom.
Where to stay in Retiro?
Luxury hotels:
- Only YOU Hotel Atocha – a stylish boutique hotel with designer interiors and great views of Retiro Park.
- Mandarin Oriental – a legendary premium hotel with exquisite interiors and first-class service.
Medium price range:
- Claridge Madrid – a cozy 4-star hotel with elegant design and excellent location.
- NH Madrid Nacional – a modern hotel with comfortable rooms and a convenient location, close to Retiro Park.
Inexpensive hotels:
- Hotel Mexico – an economical hotel with friendly staff and a convenient location, providing basic amenities for a comfortable stay.
- Hostal Retiro – a comfortable hostel with friendly staff, within walking distance of Retiro Park.
4. Salamanca – Finding a Place to Stay in Madrid for Luxury
🛍️ District Overview: Built in the 19th century under Queen Isabella II’s vision, Salamanca remains Madrid’s most exclusive neighborhood. Its grand boulevards showcase Spain’s finest boutiques and international luxury brands, with Calle Serrano hosting flagship stores of major fashion houses.
🍷 Gastronomy: The area hosts several Michelin-starred restaurants, including Ramón Freixa Madrid where tasting menus start at €185. For authentic Persian cuisine, try Banibanoo, or visit Tatel for a star-studded Spanish dining experience.
🌟 Local Life: Home to international embassies and prestigious schools, Salamanca offers a refined atmosphere where diplomats and celebrities often cross paths. The area is well-connected by public transport, with multiple metro lines serving the Golden Mile.
🎭 Cultural Calendar: The neighborhood hosts seasonal events like the Salamanca Art Walk (September-October), when galleries stay open late with free exhibitions. The National Archaeological Museum (€3 entry, free on Saturdays after 2 PM) offers fascinating insights into Spanish history.
Where to stay in Salamanca?
Luxury hotels:
- Rosewood Villa Magna – a luxury hotel with exquisite design and high-end service.
- Hotel Fenix Gran Meliá – a historic hotel with elegant interiors and luxurious rooms, located close to the shopping streets.
- Wellington Hotel & Spa Madrid – a five-star hotel with rich amenities and luxurious spas, close to the Prado Museum.
Medium price range:
- NH Collection Madrid Colón – stylish hotel with modern design and a convenient location.
- H10 Puerta de Alcalá – a comfortable hotel with a terrace and beautiful views of Puerta de Alcalá.
- Barceló Emperatriz – a modern hotel with elegant rooms and a fine restaurant, a few steps from Puerta de Alcalá.
5. Chueca – The Most Bohemian Place in Madrid
🌈 Urban Pulse: Madrid’s most progressive neighborhood transforms from quiet morning cafes to buzzing nightlife spots. The district welcomes everyone with its inclusive atmosphere and diverse cultural offerings throughout the year.
🍳 Food Hub: Mercado de San Antón spans four floors of culinary delights. Ground floor offers fresh produce and supermarket, first floor features traditional market stalls with high-quality meats and seafood, second floor hosts tapas stalls serving Mediterranean and Asian cuisine, and the top floor houses La Cocina de San Antón restaurant with a 400-square-meter terrace. Specialties include Peruvian ceviche at /M (€15-20), Italian dishes at Bosco De Lobos, and traditional Spanish tortilla at Taberna La Buha (€12 for sharing size).
🚇 Getting Around: The area is served by multiple transport options:
- Metro lines: M-1, M-2, M-5, M-10
- Buses: 10, 28, 3, 37, 45, 52, E1 (operating 6:00 AM – 11:30 PM)
- Trains: C1, C2, C3, C4B, C7, C10 from Recoletos station First metro starts at 6:05 AM, last service at 2:03 AM. Recoletos station is just 3 minutes walk from the center.
🌟 Daily Life: The market operates Monday to Saturday (9:30 AM – 9:30 PM), with gastronomy stalls open daily (12:00 PM – 12:00 AM) and the restaurant level serving until 1:00 AM. Popular spots include Serendipia for brunch, Coco House offering €15 brunch menus, and Sra. Smith’s three-course lunch menu for €13. The area features international cuisine ranging from Mexican at Gracias Padre to Peruvian fusion at Quispe.
Where to stay in Chueca?
Luxury hotels:
- The Principal Madrid – a luxury hotel with exquisite design and luxurious amenities.
- Only YOU Boutique Hotel – a unique boutique hotel with a chic interior and upscale service, located in a historic building.
Medium price range:
- Iberostar Las Letras Gran Via – a stylish hotel with modern design and comfortable rooms, located on Gran Via, within walking distance of Chueca.
- Vincci The Mint – a stylish hotel with modern design, a rooftop bar and a convenient location in the heart of the city.
Inexpensive hotels:
- 7 Islas Hotel – cozy hotel with modern design and affordable prices, within walking distance of Chueca.
- Bastardo Hostel – stylish hostel with a bright interior and friendly atmosphere, ideal for budget travelers.
- MuchoMadrid Apartments – budget hotel with simple and clean rooms, in a convenient location for exploring Chueca and surrounding areas.
6. Arganzuela – Quiet Vacation Away from the Tourist Crowds
🌳 District Character: Located within the M-30 ring road east of the Manzanares River, this former industrial area has transformed into a vibrant neighborhood. Madrid Río Park stretches 6 kilometers along the river, featuring gardens, playgrounds, and cycling paths.
🎨 Cultural Hub: Matadero Madrid, a converted early 20th-century slaughterhouse, serves as a dynamic arts center. The complex hosts concerts, exhibitions, and an eco-products market throughout the year.
🚇 Transport Links: The area is excellently connected with multiple metro lines (3 and 6), including stations Legazpi, Palos de la Frontera, Méndez Álvaro, and Arganzuela-Planetario. Numerous bus routes and proximity to Atocha station provide additional connectivity.
🎯 Local Life: The neighborhood features diverse housing options, from modern apartments to classic buildings with traditional Madrid architecture. The area attracts families, young professionals, and students seeking a blend of urban convenience and residential calm.
🍽️ Food Scene: Try tapas at Bar Toboggan or enjoy a cold beer at Bodega Salvaje. For fresh produce, visit Mercado de Santa María de la Cabeza. The area’s culinary scene includes rising stars like restaurant Èter, aspiring for Michelin recognition.
Where to stay in Arganzuela?
Luxury hotels:
- AC Hotel Carlton Madrid by Marriott – a hotel of the famous Marriott chain with exquisite decor and a convenient location close to many tourist attractions.
- Hotel Opera – an elegant boutique hotel near the Royal Palace.
Medium price range:
- Barceló Torre de Madrid – stylish hotel with modern design and high level of service.
- Hotel Mora by MIJ – a cozy boutique hotel with a rooftop terrace and bar.
Inexpensive hotels:
- Hostal San Blas – cozy hostel with basic amenities and affordable prices, suitable for young people and budget travelers.
- Posada del León de Oro Boutique Hotel – budget hotel with basic amenities, excellent value for money.
7. Chamartin – Perfect Area in Madrid for Experiencing Both Parts of the City
🇪🇸 Spanish culture: Chamartin district is a quiet yet conveniently located neighborhood perfect for tourists looking to experience authentic Spanish culture. Despite being just a short metro ride away from the bustling city center and main attractions like the Royal Palace and Plaza Mayor, Chamartin retains a relaxed local vibe.
🚂 The heart of the neighborhood: The heart of the district is the Chamartin train station, which offers direct connections to the airport and other major Spanish cities. Radiating out from the transit hub you’ll find tranquil residential streets lined with small shops, traditional tapas bars, and neighborhood plazas where locals gather to chat and enjoy some sun. The area has plenty of inexpensive pensións and hostels, making it a budget-friendly base for your Madrid adventures.
❔ What else to see: While not home to major tourist sites, Chamartin does have several cultural highlights worth visiting. Parque de Berlín is a sprawling green space with fountains, sculptures and even a traditional Japanese garden. Enjoy concerts at the Teatro Auditorio on Avenida de Brasil, or visit the striking white Agustín Lara building designed by architect Richard Rogers.
🚇 Well-connected by metro: The efficient metro system makes getting around Chamartin a breeze. Three metro lines serve the area, with stations like Pinar de Chamartin, Colombia, and Prosperidad connecting you to the rest of Madrid in minutes.
With its small town feel yet close proximity to Madrid’s top sites, Chamartin is an ideal home base for experiencing both sides of the city.
Where to stay in Chamartin?
Luxury hotels:
- Hotel Puerta América – a unique hotel with modern design by various world architects, offering luxury accommodation.
- Eurostars Madrid Tower – a luxury hotel with panoramic views of the city and high level of service, ideal for business and leisure travelers.
Medium price range:
- NH Collection Madrid Eurobuilding – comfortable hotel with modern design, comfortable rooms and a variety of restaurants.
- Hotel Madrid Chamartín, Affiliated by Meliá – an economical hotel with cozy rooms and close proximity to Chamartín train station.
Inexpensive hotels:
- Crisol Vía Castellana – an inexpensive option with comfortable rooms and friendly staff.
- Madrid Studio Apartments – budget hotel with basic amenities, ideal for budget travelers.
8. Tetuan – Best Neighborhood to Stay in Madrid on a Budget
⚔ District history: Known locally as Barrio de Tetuán, this district gets its name from the Battle of Tetuan between Spain and Morocco in 1860. Today, it retains much of its traditional Spanish character while also becoming a diverse, multicultural hub.
🏪 There’s a lot to see: Tetuan is best known for the Plaza de la Remonta, a lively square lined with restaurants and bars that comes alive at night. Around the plaza, guests can browse the many shops selling Spanish wines, embutidos (cured meats), and other local specialties. The Mercado de Maravillas is Madrid’s largest municipal food market, where you can pick up fresh produce, artisanal cheeses, and more.
🚇 Well-connected: To the southwest is the happening Malasaña neighborhood and the famed Gran Via shopping boulevard, while the Paseo de la Castellana business district and the museums of the Paseo del Prado are just to the southeast. Excellent metro connections make it easy to zip over to the Parque del Retiro, the Royal Palace, or restaurants in the La Latina tapas district.
🤑 Low-cost accommodation: Accommodations in Tetuan run from mid-range hotels to budget-friendly hostels and Airbnbs, providing good value compared to pricier options in the city center.
If you want convenience to Madrid’s top sights along with an authentic Spanish neighborhood feel, Tetuan is an ideal home base.
Where to stay in Tetuan?
Medium price range:
- 4C Bravo Murillo – a cozy hotel with a homely atmosphere and affordable prices.
- Aparthotel G3 Galeon – a modern aparthotel with spacious rooms at a reasonable price.
- H10 Tribeca – a stylish city center hotel with good value for money.
Inexpensive hotels:
- Erase un Hotel – a small budget hotel with simple rooms and friendly staff.
- Feelathome Castilla Apartments – a budget apartment with basic amenities for a comfortable stay.
- Pierre & Vacances Apartamentos Edificio Eurobuilding 2 – simple and inexpensive apartments in a convenient location.
9. Chamberi – Best Neighborhood to Stay in Madrid for Families
🏛️ Architecture: A traditional district with aristocratic flair, featuring well-preserved 19th-century buildings and elegant streets. The neighborhood showcases some of Madrid’s finest examples of early 20th-century architecture, including modernist gems like Edificio Carrión.
🍷 Dining Scene: Calle Ponzano, nicknamed Madrid’s “Restaurant Row,” offers over 70 eateries, from traditional taverns to modern gastropubs. Try Casa Macareno for classic tapas (€3-5), Sala de Despiece for innovative cuisine (tasting menu €45), or La Máquina for Madrid’s best seafood.
Best spots for tapas in Chamberí:
- Casa Paco – Famous tortilla (€3.50)
- Taberna La Daniela – Traditional cocido madrileño (€23.90)
- La Ardosa – Historic tavern since 1892
- Santerra – Modern Spanish cuisine
- Sylkar – Local favorite for vermút
🎭 Culture: The Sorolla Museum (€3 entry, free Saturdays after 2 PM) displays the artist’s works in his former home. The Andén 0 museum, housed in a former metro station, offers free entry to explore Madrid’s transport history.
🌅 Evening Culture: The restored Olavide Cinema shows classic films for €4.50 on Wednesdays. The district comes alive during the San Joaquín festivities in August, featuring open-air concerts and traditional zarzuela performances in Plaza Chamberí.
Where to stay in Chamberi?
Luxury hotels:
- Relais & Châteaux Hotel Orfila – a luxury boutique hotel in an elegant 19th-century building with upscale service.
- NH Collection Madrid Abascal – a chic, modern-style hotel with an excellent location and luxurious rooms.
- Leonardo Boutique Hotel Madrid – an elegant boutique hotel with a personalized touch and high level of service.
Medium price range:
- Home Art Apartments Chamberí – cozy apartments with all amenities and good value for money.
- Slow Suites Luchana – comfortable apartments in the city center at a reasonable price.
- NH Madrid Zurbano – a mid-range hotel with an excellent location and a good range of services.
Inexpensive hotels:
- Bonavista Apartments – simple and inexpensive apartments suitable for budget accommodation.
- Hotel Sardinero Madrid – an economical hotel with basic amenities at an affordable price.
- Feelathome Waldorf Suites Apartments – reasonably priced apartments with simple but comfortable rooms.
10. Barrio de las Letras – Apartments in Madrid with a Rich Literary History
📚 Historic Legacy: This neighborhood was home to Spain’s Golden Age writers like Cervantes, Lope de Vega, and Quevedo. Their quotes are now embedded in golden letters along the cobblestone streets, creating an open-air literary museum.
Key Literary Spots:
- Cervantes House Museum (free entry Sundays)
- Lope de Vega House Museum (guided tours €5)
- Teatro Español – Spain’s oldest theater
- Literary cafés along Calle Huertas
- Historic bookshops and printing houses
🎭 Entertainment: The area hosts numerous theaters, including Teatro de la Cruz and Teatro Español, offering performances from classical Spanish drama to contemporary works. Prices range from €15-60 depending on the show.
🍽️ Culinary Scene: The neighborhood offers an excellent mix of traditional and modern dining:
- Casa Alberto (since 1827) – Traditional Madrid cuisine
- La Venencia – Historic sherry bar
- Vinoteca Moratín – Wine bar with tapas
- Estado Puro – Modern Spanish fusion
- La Huerta de Tudela – Seasonal vegetables
🚇 Accessibility: The Literary Quarter enjoys excellent transport connections with three metro stations: Antón Martín, Sol, and Sevilla. Eight bus routes (6, 10, 14, 27, 32, 34, 37, 45) serve the neighborhood throughout the day from 6:00 AM until 11:30 PM. The area sits conveniently between two major train hubs – Sol and Atocha Cercanías stations. Most visitors appreciate that all major attractions lie within a comfortable 15-minute walk, making it easy to explore the neighborhood on foot.
🎭 Cultural Calendar: The neighborhood hosts annual Literary Week in April, with poetry readings in historic cafés and theatrical performances in Plaza Santa Ana. Sunday mornings feature a books and prints market along Calle Huertas, where local artists showcase their work from 10:00 AM to 2:00 PM.
All hotels in the Literary Quarter →
Where to stay in Barrio de las Letras?
Luxury hotels:
- CoolRooms Palacio de Atocha – a luxury hotel in a historic building with a great location near the train station.
- Gran Hotel Inglés – an elegant hotel with a high level of service in the heart of Madrid.
- Room Mate Alba – a stylish designer hotel with modern rooms and proximity to museums.
Medium price range:
- U-Sense Madrid Santa Ana – a comfortable hotel with a modest design and good value for money.
- Catalonia Plaza Mayor – a practical hotel near the central square with comfortable rooms at a reasonable price.
- Sonder Santa Ana – a modern mid-range hotel with a good location in the historic center.
Inexpensive hotels:
- Hostal Lisboa – a simple and inexpensive hotel with basic amenities for budget travelers.
- Room Mate Alicia – a stylish and inexpensive downtown hotel with a minimalist design.
- Apartamentos Huertas – apartments with a kitchen at an affordable price in the heart of Madrid.
Best Areas in Madrid on a Map
FAQs about Madrid
What is the most fun Madrid neighborhood?
The most fun neighborhood in Madrid for many is Malasaña. It has a hip, lively atmosphere with cool boutiques, vintage shops, and plenty of bars and nightlife. The area has a young, artsy vibe.
Is Madrid a walkable city?
Madrid is generally quite walkable, especially in central neighborhoods like Malasaña, La Latina, and Sol. The city center is compact and has lots of pedestrian zones. Public transportation like the metro is also good for getting around.
Where is the main centre of Madrid?
The main center of Madrid is Puerta del Sol, a large plaza and public transportation hub. Many major sights like the Royal Palace and Plaza Mayor are nearby, making it a great base. The Gran Via shopping street starts here too.
What is the safest area to stay in Madrid?
One of the safest areas for visitors is the Barrio de Salamanca. It has upscale shops and restaurants, and landmarks like the Prado Museum nearby. As a wealthy district, it is very well-policed. Most central neighborhoods are relatively safe though.
What part of Madrid has the best nightlife?
For nightlife, La Latina and Malasaña are vibrant nighttime hot spots. Both have lively tapas bars that turn into late night revelry. Chueca also has a renowned LGBTQ+ nightlife scene. Kapital club is a famous mega-club open until the morning.
Areas to avoid in madrid?
Areas to perhaps avoid include the neighborhoods of Lavapiés after dark, which has higher crime rates, and the area around the Atocha train station, which can be seedy. Use common sense like avoiding deserted streets at night.
How many days to stay in madrid?
Most people find 3 full days is ideal to see the highlights of Madrid. This allows time to visit top attractions like the Prado Museum and Royal Palace, experience the food and nightlife, and take a day trip to Toledo. With 5-7 days you could also see Segovia, El Escorial, and more of the region.
