Where to Stay in Madrid, Spain: The Best Hotels & VRBOs (2023)
If you’re planning a trip to Spain and wondering where to stay in Madrid, you’ve come to the right place. Often overlooked in favour of other Spanish cities like Barcelona and Sevilla, Madrid is a melting pot of culture, popular attractions – that includes one of the best museums in Europe -, tapas bars and world-class restaurants. With most things to see in Madrid being so centrally located it’s the perfect place for a European weekend away full of good food, wine and culture.
With so many luxury hotels, mid-range stays and good value options in the city center, the hard part is simply deciding where to stay in Madrid.
With so many epic neighbourhoods to choose from, in this post, I’ll share a little about each one so you can decide where to stay and which hotel or VRBO to choose for the best stay possible to suit your needs, whether that’s right next to the Museo del Prado or within easy access of Retiro park for your morning jog.
*This where to stay in Madrid post contains affiliate links meaning I might make a small profit if you choose to book at no extra cost to you.
The Best Areas to Stay in Madrid
The Spanish capital is full of vibrant and colourful neighbourhoods, each with its own vibe and style. One of the best things to do in Madrid is to simply walk around each neighbourhood aimlessly and discover new places as you go. For first-time visitors in the city, it’s best to stay in the Centro. Here, you’re always never too far from the action and most points of interest are within walking distance or a short metro ride.
Within Centro there are many different neighbourhoods each with their own draws. They are:
- Malasaña
- Chueca
- Las Salesas
- Barrio de Las Letra
- Salamanca
- Retiro
- La Latina
- Lavapiés
- Sol-Gran Vía
Which one of these best neighborhoods you choose will depend on what you look for in an area normally when you travel and the purpose of your trip. You will no doubt visit most of these areas during your stay in Madrid as Madrid’s most famous places to visit are all scattered between them.
Read More: The Perfect Madrid Two Day Itinerary | The Best Things To Do
Madrid is not a big city and it really does have a large town feel to it compared to the world’s big cities like London, Tokyo or Mexico City. It does, however, have something for everyone and each neighbourhood, for the most part, is perfect for couples, groups, party-goers and families.
Let’s talk about each neighbourhood one by one so you can make the decision as to which area in Madrid is best for your needs and travel style.
Malasaña
Malasaña is one of Madrid’s trendiest and hippest neighbourhoods but that wasn’t always the case.
Historically known as the heart of the ‘Movida Movement’, a countercultural movement that started just after Spain’s return to democracy after Franco, Malasaña has always been a little ‘rough around the edges’.
Since those times it’s seen rapid gentrification of chic shops and hip eateries and nowadays it’s just a cool place to hang out with nice public squares, new gastro bars opening on every corner and plenty of street art to admire.
If you love staying in shabby-chic areas with all the hippest offerings make sure you stay in Malasaña.
Chueca
Known throughout the city as the LGBTQI neighbourhood, Chueca is a primarily old residential neighbourhood full of historical buildings juxtaposed next to modern cultural venues. Plaza de Chueca is the hottest meeting point here, especially at night when the area comes alive with the hottest nightclubs and parties in Madrid. This is definitely where to stay if you’re in Madrid for the nightlife.
Las Salesas
Between Chueca and Salamanca, you’ll find the small neighbourhood of Las Salesas- a small extension of Chueca. This is the perfect place to stroll around at the weekend- so this might be a place for you to stay if you’d like to spend the weekend in Madrid just walking around the city. It’s full of cute designer boutiques and Instagrammable cafes and restaurants you’re going to want to try at least once for brunch or a late lunch.
Barrio de Las Letras
Barrio de Las Letras is Madrid’s most culturally significant neighbourhood. Both Miguel de Cervantes and Ernest Hemingway regularly stomped through these streets to their favourite bars and handouts.
Today you’ll still find plenty of bars here- a lot of them spilling out into the wide streets and plazas making it the perfect place for some afternoon people watching. You’ll find most of the action in and around busy Plaza Santa Ana where you can grab a drink and some tapas after the end of a long day of exploring.
This neighbourhood is ideal for those who like a quieter and more traditional bar and restaurant scene.
Salamanca
Salamanca is a place to stay for luxury travellers. Here you’ll find most of the city’s grand, 5-star hotels, fancy avenues and all the top designer boutiques, both international and Spanish.
It’s one of the best places to indulge by going out for a designer cocktail and finish the night at the number of Michelin-starred restaurants in the area. Not everything here is for the luxury traveller, however, and the area is still worth exploring even if you are on a budget.
There are many cheap but great restaurants in the area, especially at chic Mercado de la Paz where you can enjoy some of the city’s best tapas and fresh produce.
Retiro
Home to the park of the same name, Retiro is a great place to stay if you’re after a quieter Madrid vacation. It’s a little further away from the centre and other neighbourhoods, especially when staying towards the eastern side, but being so close to Madrid’s most famous park does have its advantages.
Start the morning with a run around the park in the summer or why not end the day with a picnic dinner as the sun sets. Retiro is also close to the Botanical Garden and the Prado Museum so if those are high on your list, consider staying in Retiro.
La Latina
La Latina encompasses the oldest area of Madrid and it’s here where you’ll find old buildings, grand churches and the famous El Rastro flea market. Walk down the narrow streets and come out onto large plazas full of people enjoying outdoor tapas bar terraces. If you want to be close to all the major sights- La Latina borders Plaza Mayor- then this is where to stay. Most hotels here are old and charismatic with a colonial flair.
Lavapiés
If you’re looking for a more edgy and up-and-coming area to stay in, Lavapiés is another great central option. Bordering El Rastro flea market and just minute’s walk away from El Retiro Park this neighbourhood has something for everyone.
Also known as being one of the most culturally diverse areas of Madrid, Lavapiés is where you’ll find many immigrant-owned bars and restaurants- a great place to come if you’ve already had your fill of Spanish food. There are some pretty hip bars in the area too.
Sol-Gran Via
For a real mix of accommodation options, Sol-Gran Via is Madrid’s busiest hub full of narrow historical side streets as well as the grand boulevard Gran Via, lots of traditional Spanish restaurants, tapas bars and food markets. This is also the area to stay in if you’re in Madrid for some shopping as you’ll find all the main high-street brands here. It’s a great place for walking and many of Madrid’s sights are a short walk from here.
In summary:
Where to Stay in Madrid for Sightseeing: Sol- Gran Via, Chueca and Retiro
Where to Stay in Madrid for wellness: Retiro and Salamanca, La Latina
Where to Stay in Madrid for the Coolest neighbourhoods: Chueca, Las Salesas, Malasaña and Lavapiés
Where to Stay in Madrid for the best food: Anywhere in Centro. All the neighbourhoods we mention have so many great restaurants.
Where to stay for luxury travel: Salamanca
Where to stay in Madrid for family travel: Sol-Gran Via and Retiro
Where to stay for Madrid nightlife: Chueca, Malasaña, La Latina, Lavapiés
WHERE TO STAY IN MADRID, HOTELS BY AREA:
Malasaña
The iconic hotel Riu occupies almost the whole block right on Gran Via, on the edge of the neighbourhood of Malasaña. Combining elements of modernism with art deco, this well-designed hotel has everything you need for a fine stay in Madrid. A modern restaurant, cocktail bar, fitness center and heated pool and rooftop bar that offers stunning views over the city and simple and comfortable rooms make Riu a grand choice while in Madrid.
Check availability and rates booking.com | Agoda
Minimal, chic and oh-so-cool, if you love minimal design and great views, a stay here is a must. This small boutique hotel located in Malasaña and close to everything you might need, has one of the best rooftops in the city, with amazing views, a rooftop restaurant, lounge and plunge pool for those long summer days. This hotel is simply beautiful and my personal top choice when in Madrid.
Check availability and rates here booking.com | Agoda
For traveller’s seeking comfort and value, Hostal Palacio Luna doesn’t disappoint. Located close to many bars restaurants and points of interest, this small hostal is comfortable, cosy and virtually noise-free. It’s been well-thought-out in the details- hello plug sockets on each side of the bed and you’ll find everything you’ll need here for the perfect rest after a long day of exploring. Rooms here are rather small, so best for weekenders or those without a lot of luggage.
Check availability and rates here booking.com | Agoda
Chueca
For a stay at one of Madrid’s most vibrant hotels, try Room Mate Oscar in the heart of Chueca. This brightly coloured, stylish hotel is perfect for couples looking to get the most out of this part of the city. Each room comes with a large double bed, desk area and chillout area, air-conditioning, TV and free wifi. On the rooftop, there’s a restaurant/bar with fantastic views over the city, especially at sunset. Make sure to book early to not miss the rooms with a free-standing bathtub.
Check availability and rates here booking.com
B&B Hotel Madrid Centro Fuencarral 52
Simple, clean and modern is what you can expect from this fantastic B&B style property. Rooms here are modern, new and sparkling clean with equipped en suite bathrooms, minibars, TV and wifi. The hotel is located in a converted 19th Century with a rooftop perfect for sundowners and each room is soundproofed for maximum rest. In the immediate area, you’ll find lots of lovely boutiques, restaurants and cool bars.
Check rates and availability here Booking.com | Agoda
For modern elegance with a bit of a speakeasy vibe, this ornate hotel is full of stylish corners to relax in and have a drink or savour your morning breakfast. Located just a 10-minute walk from Puerta del Sol, this hotel is close to everything and its cute restaurant offers both wine and tapas for when you can’t get enough or when you’re too tired to go out. The rooms are bright, airy and the beds are super comfortable. They are also equipped with everything you might need throughout your stay.
Check rates and availability here booking.com | Agoda
