Where to Stay in Madrid: 8 Best Areas and Hotels

Madrid is one of the best and most beautiful cities in Europe. It’s pretty walkable, which makes it very easy to explore. However, depending on your travel style and preferences, there are different neighbourhoods to consider during your visit. In this blog post I am sharing with you my 8 best Madrid areas and hotels.

Each neighbourhood offers a special experience, which we will discuss here. For each Madrid area, I will also share my top 3 hotels for you.

✅ If you’re looking for a custom travel plan, find out more about my personalised itinerary service here.

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📖 Read my The Ultimate 4 Days in Madrid Itinerary blog post.

Sol-Gran Via: Perfect for First-Time Visitors

Sol is a perfect place to stay, especially for first-time visitors. You basically can’t stay more central than this.

It’s a great neighbourhood because all the main sights in Madrid are within a walking distance, so you won’t really need public transport at all. The only con of staying at Sol-Gran Via neighbourhood is that it can be noisy or busy at times, but most hotels handle this hustle and bustle quite well!

Its main site is Plaza Mayor, a major public space which was once the centre of Old Madrid. It’s a large square with plenty of restaurants, cafes and bars.

In Sol you will also find Gran Via, the main shopping street in Madrid. It is the busiest street of Madrid, but also the most beautiful one.

I recommend you to get to Azotea del Circulo, a rooftop bar and restaurant for food and drinks and to enjoy the views of Gran Via and Madrid.

📖 Check my Top 11 Madrid Hotels with the Pool: Best Rooftop Pools blog post.

Barrio de las Letras (Huertas): Literary Quarter Perfect for Bookworms

Barrio de las Letras, shortly Huertas, is a Literary Quarter in the centre of Madrid.

It’s mostly famous for Miguel de Cervantes Saavedra who lived in a house in the quarter and died there. His house is still in the neighbourhood with an inscribed monument, which you can visit from the street.

Many writers from the 17th Gold Century of Spanish Literature lived right there, such as Lope de Vega, Quevedo and Gongora.

Its main square is Plaza de Santa Ana full of bars, cafes and restaurants. You will also find 2 monuments there, one dedicated to Calderon, a famous writer of operas and plays also from the Spanish Golden Age. The other one is dedicated to Federico Garcia Lorca, a poet who belonged to the surrealism movement.

Huertas is very close to the Prado Museum, which makes this neighbourhood a perfect choice for anyone interested in cultural heritage.

📖 Check my 16 Best Books to Read Before Visiting Spain: Fiction & Non-Fiction blog post.

Argüelles: Perfect for Budget-Friendly Options nearby Main Attractions

Arguelles is a perfect location to stay in Madrid for many reasons.

It is close to main attractions like the Royal Palace, Temple of Debod and Plaza de España which makes it great for first-time visitors.

Also, there are many beautiful hotels in the area that are very budget-friendly.

Plus, there are a lot of universities there, therefore the prices for bars and restaurants are often cheaper than elsewhere because of the students.

Lastly, my favourite thing about Arguelles is that you will find the best Flamenco show there: Las Tablas. Even if you’re not staying in Arguelles, definitely come there just to see this exact Flamenco show.

La Latina: Perfect for Foodies

If you’re a Foodie like me, this is definitely a great neighbourhood to stay in Madrid.

There are many great restaurants in the area, but you have to stroll through Calle Cava Baje, a 300 m (984 ft) long street with 50+ tapas bars!

La Latina is very close to the Royal Palace and Plaza Mayor which makes it another great central location to stay.

📖 Check my 5 Best Places to Visit in Spain for First Timers blog post.

Salamanca: Perfect for Luxury Travellers

Salamanca is the most elite and luxurious neighbourhood of Madrid.

The neighbourhood was developed in the second half of the 19th century as an expansion planned under Queen Isabella II’s rule. The designer was Málaga-born José de Salamanca y Mayol, Marquis of Salamanca. 

Historically, Salamanca has been a residential area inhabited mainly by Spain’s financial and political elite. It has remained a business district famous for luxury shopping.

Salamanca is close to El Retiro Park, about 15 min walk to it.

📖 Read my Ernest Hemingway in Madrid: Books to Read & Spots to Visit blog post.

Malasaña: Perfect for Nightlife

Malasana was the epicentre of the countercultural Movida movement in 1975 after Franco’s dictatorship ended.

The neighbourhood is still known for its creativity, hipsterish and bohemian culture with many hip shops, bars and clubs, especially at Plaza del Dos de Mayo.

Therefore, if you’re into nightlife, this area is for you.

Chamberí: Perfect for Families

Chamberi is one of the safest neighbourhoods in Madrid.

It is also mainly a residential area very close to the city centre which makes it a perfect choice for families or if you’d like to truly experience the local life.

Lavapiés: Perfect for Art Lovers

If you’re into art, then Lavapies is a perfect neighbourhood for you.

Museum Reina Sofia is located there where you can find Picasso’s most famous painting – Guernica. I don’t know about you, but to see this painting was probably one of the main reasons why I always wanted to visit Madrid.

Beside art, Lavapies is a cool, trendy neighbourhood with lots of tapas and bars + international cuisine because a lot of immigrants live there.

El Retiro Park is literally just a few min walk. It’s a really great location.

✅ If you’re looking for a custom travel plan, find out more about my personalised itinerary service here.

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