Where to Stay in Madrid – 8 Best Areas and Top Hotels

Madrid. A capital of Spain since 1561 when Philip III moved the capital from Toledo to Madrid. It is the 2nd highest city in Europe and the 5th largest. Madrid has a population of 3.223 million people which is why it is important to choose your hotel base close to main attractions because it is actually a pretty walkable city when you stay central. In this blog post we will cover 8 best areas in Madrid and top hotels in each of them for your ultimate stay in the Spanish capital.

Madrid best areas and hotels

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Madrid Best Areas to Stay and Top Hotels

Here are Madrid’s best areas to stay based on what type of traveller you are and 3 top hotels in each neighbourhood.

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 practically 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. A perfect place for people watching.

In Sol you will also find Gran Via, the main shopping street in Madrid (something like the 5th Avenue in NYC or Regent Street in London).

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.

Azotea del Circulo, Sol-Gran Via Madrid

Top 3 Hotels in Sol-Gran Via

Here’s my recommendation for the top 3 hotels in Sol-Gran Via:

  1. Pestana CR7 Gran Vรญa Madrid

Pestana CR7 Gran Via is a partnership between Cristiano Ronaldo and Pestana Hotel Group. What’s perfect about this hotel is that it is the only one in Madrid that has rooftops of 360 degree views of Madrid from multiple platforms. They even serve breakfast at the rooftop, which is a perfect way to start a day if you ask me! Also, Madrid gets really hot in summer and there’s no sea nearby, but Pestana CR7 has an infinity pool where you can refresh while enjoying the views. ๐Ÿ˜

โญ๏ธ 4 star โค๏ธ 8.7 Fabulous ๐Ÿ’ฐ ยฃ152+ per night ๐Ÿฉ Book it

2. Vincci The Mint

Vincci The Mint is a beautiful boutique hotel designed in 50 shades of green, therefore the name. There’s a gorgeous terrace outside, so you can relax while sipping cocktails (it gives away the beach vibes and drinks are served from a green American van!). It’s a really great value for money.

โญ๏ธ 4 star โค๏ธ 9.1 Superb ๐Ÿ’ฐยฃ152+ per night ๐Ÿฉ Book it

cocktails at Azotea Madrid

3. Preciados

Preciados is a beautiful luxury hotel in a refurbished 19th century old building. It’s in a very central location – 600 m (1968 ft) from Mercado San Miguel (a must stop for foodies!), 10 minute walk from Royal Palace and 5 minute walk from Puerta del Sol. You have to have a coffee in their Cafe Varela.

โญ๏ธ 4 star โค๏ธ 9.0 Superb ๐Ÿ’ฐยฃ132+ per night ๐Ÿฉ Book it

Hotel Preciados

Photo Credit: Flickr (edited)

๐Ÿ“– Planning a trip to Madrid? Read my 4 Days in Madrid Itinerary โ€“ Things to do in Madrid 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 of Miguel de Cervantes Saavedra who lived in a house in the quarter and died there. His house is still there with an inscribed monument, which you can visit from the street. Many writers from the 17th Gold Century of Spanish Literature lived right there beside Cervantes, 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.

Cervantes House Madrid

Photo Credit: Flickr (edited)

Yet when you get to know it [Madrid], it is the most Spanish of all cities, the best to live in, the finest people, month in and month out the finest climate.

Wrote Ernest Hemingway in Death In The Afternoon who also lived in Madrid in the late 1920’s.

Top 3 Hotels in Barrio de las Letras

Here’s my recommendation for the top 3 hotels in Barrio de las Letras:

  1. NH Collection Madrid Paseo del Prado

NH Collection Madrid Paseo is a 5 star hotel in Huertas, only a 5 min walk from Prado Museum and Thyssen-Bornemisza Museum. It is also a 10 minute walk from El Retiro Park. It’s a great central location close to many Madrid’s attractions.

โญ๏ธ 5 star โค๏ธ 8.5 Very Good ๐Ÿ’ฐยฃ219+ per night ๐Ÿฉ Book it

El Retiro Park

2. Catalonia Las Cortes

Let’s just say this: You will stay in an 18th century palace if you choose to stay at Catalonia Las Cortes! And the best part? It is super affordable!

The hotel is only a 10 min walk from Prado Museum and very close to Plaza Mayor and Mercado San Miguel.

All rooms are elegantly decorated, but if you book a suite, you will get a room with original ceiling frescoes. Some rooms have French balconies too.

โญ๏ธ 4 star โค๏ธ 9.2 Superb ๐Ÿ’ฐยฃ133+ per night ๐Ÿฉ Book it

inside the Royal Palace in Madrid

P. S. This is inside the Royal Palace, but you can expect something like that, just more simple ๐Ÿ˜‰

3. ME Madrid Reina Victoria by Meliรก

Guess what?! Another palace!

ME Madrid Reina Victoria by Meliรก is an avant-garde design hotel set in a 19th century palace.

The hotel is very close to Puerta del Sol, Plaza Mayor and Prado Museum.

โญ๏ธ 4 star โค๏ธ 8.4 Very Good ๐Ÿ’ฐยฃ177+ per night ๐Ÿฉ Book it

ME Madrid Reina Victoria by Meliรก

Photo Credit: Flickr (edited)

Argรผelles: Perfect for Budget-Friendly Options nearby Main Attractions

Arguelles is a perfect location for many reasons. It is close to main attractions like the Royal Palace, Temple of Debod and Plaza de Espaรฑa which makes it great for first-time visitors. Also, there are many beautiful hotels there that are very budget-friendly, my recommendation is Principe Pio which I will share in more details in the next chapter.

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

And my favourite thing about this neighbourhood is that you will find the best Flamenco show there: Las Tablas. I cannot recommend it more to you guys. Even if you’re not staying in Arguelles, definitely come there just to see this exact Flamenco show.

Las Tablas Flamenco Show Madrid

Top 3 Hotels in Arguelles

Here’s my recommendation for the top 3 hotels in Arguelles:

  1. Principe Pio

Hotel is literally a 5 min walk from the Royal Palace and Plaza Espana. We didn’t have to use the public transport at all, only once when we were doing a day trip to Toledo, then we took Uber to Atocha train station because it was a 45 min walk and we didn’t want to risk it. Otherwise, everything is within a walking distance. The rooms are beautiful, clean and the breakfast was good too. Highly recommend it.

I stayed there and loved it a lot! Do I have to mention that I could see the Royal Palace from my room?! ๐Ÿ˜

โญ๏ธ 3 star โค๏ธ 8.9 Fabulous ๐Ÿ’ฐยฃ71+ per night ๐Ÿฉ Book it

Principe Pio Hotel

This was the view from our room ๐Ÿ˜

2. Melia Madrid Princesa

Melia Madrid Princesa is one of the first 5 star hotels that opened in Madrid. The location is great and what’s great is that most restaurants and bars nearby are visited mainly by locals rather than tourists, so if you’d like to have a sneak-peek into the locals life, this is a great location.

Plaza Espana is within a 5 minute walking distance, and you can also walk about 20 minutes to Plaza Mayor, Royal Palace and Puerta del Sol.

โญ๏ธ 5 star โค๏ธ 8.4 Very Good ๐Ÿ’ฐยฃ128+ per night ๐Ÿฉ Book it

3. Aparto-Hotel Rosales

A family-friendly hotel that is within 20 minutes walking distance from the Royal Palace. It’s a perfect choice if you’d like to stay outside of the main hustle and bustle while still being close to main attractions.

โญ๏ธ 3 star โค๏ธ 8.8 Fabulous ๐Ÿ’ฐยฃ69+ per night ๐Ÿฉ Book it

Royal Palace Madrid

La Latina: Perfect for Foodies

If you’re a Foodie (like me!), this is definitely a great neighbourhood to stay in. There are many great restaurants in the area, but you absolutely have to stroll through Calle Cava Baje, a 300 m (984 ft) long street with 50+ tapas bars!

The best tapas bar there is Casa Lucas.

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

Top 3 Hotels in La Latina

Here’s my recommendation for the top 3 hotels in La Latina:

  1. Porcel Ganivet

Porcel Ganivet is a beautiful boutique hotel in Madrid, only about 15 min walk from Mercado de San Miguel (my favourite street food stop in Madrid) and Plaza Mayor. There’s a rooftop swimming pool which is a great refreshment if you’re in Madrid during summer.

It’s a really good value for money.

โญ๏ธ 3 star โค๏ธ 8.5 Very Good ๐Ÿ’ฐยฃ94+ per night ๐Ÿฉ Book it

2. Posada del Dragรณn Boutique Hotel

La Latina has some of the best boutique hotels and cute apartments in Madrid, so another beautiful boutique hotel is Posada del Dragon. What I really love about this hotel is its design. On each floor you can see the inspiration of Spanish history in the design of each room, from their Arab and Castilian origins to the most retro and groundbreaking Madrid.

The hotel is on Cava Baje, which is a perfect location. It is only about a 10 min walk from Royal Palace and Plaza Mayor.

โญ๏ธ 4 star โค๏ธ 8.4 Very Good ๐Ÿ’ฐยฃ68+ per night ๐Ÿฉ Book it

3. Posada del Leรณn de Oro Boutique Hotel

Posada del Leon de Oro is also a boutique hotel right on the Cava Baje, so definitely can’t get better than this!

The hotel is in a 19th century old building which has been renovated carefully to keep as much of the original design as possible. Under the glass floor in the restaurant you can see vestiges of the 12th-century city wall, which is pretty cool!

It is about a 10 min walk from the Royal Palace.

โญ๏ธ 4 star โค๏ธ 9.0 Superb ๐Ÿ’ฐยฃ111+ per night ๐Ÿฉ Book it

Madrid best areas and hotels to stay

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 IIโ€™s rule. The designer was Mรกlaga-born Josรฉ de Salamanca y Mayol, Marquis of Salamanca. 

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

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

El Retiro Park

Top 3 Hotels in Salamanca

Here’s my recommendation for the top 3 hotels in Salamanca:

  1. Wellington Hotel & Spa Madrid

Wellington Hotel in Madrid was inaugurated on 19th of April 1952 and is located in a listed and protected building, which is part of Madrid’s architectural heritage. It’s a 5 star luxury hotel very close to El Retiro Park, only a short 4 minute walk.

It has beautifully decorated rooms and there’s also an outside swimming pool.

Many famous people stayed there, such as Ernest Hemingway (one of my favourite writers), Matt Damon, Graham Greene as well as the Spanish royal family.

It’s a perfect combination if you like history and luxury!

โญ๏ธ 5 star โค๏ธ 9.0 Superb ๐Ÿ’ฐยฃ270+ per night ๐Ÿฉ Book it

2. Relais & Chรขteaux Heritage Hotel

I fell in love with Relais & Chateaux Heritage Hotel the moment I saw it. It’s a gorgeous luxury hotel which was designed by Lorenzo Castillo, one of Spainโ€™s most respected designers. The building belongs to the Belle Epoque style and still keeps some of its original features. The interior is designed in blue and grey palette and some green tones too with artworks and objects from the 18th and early 19th centuries that you can see throughout the property.   

The hotel is a little bit further away from the city centre, about 25 min walk to El Retiro. However, it is also a less busy part of the city where you can truly experience the local life (luxurious ofc!).

โญ๏ธ 5 star โค๏ธ 9.2 Superb ๐Ÿ’ฐยฃ188+ per night ๐Ÿฉ Book it

El Retiro Park

3. BLESS Hotel Madrid – The Leading Hotels of the World

Pure luxury. Especially the Penthouse with Terrace. You get your own suite, 48 m2 (516.668 square foot) big terrace, private outdoor pool, separate salon and bedroom. But even the “standard” room is gorgeous and rest assured there’s an amazing swimming outdoor pool for everyone.

Bless Hotel is closer to the city centre, about 14 min walk to El Retiro Park, on a famous Velazquez Street.

โญ๏ธ 5 star โค๏ธ 8.7 Fabulous ๐Ÿ’ฐยฃ246+ per night ๐Ÿฉ Book it

Malasaรฑa: 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.

Malasana

Photo Credit: Wikimedia Commons (edited)

Top 3 Hotels in Malasana

Here’s my recommendation for the top 3 hotels in Malasana:

  1. Vincci Vรญa – 66

Vincci Via 66 Hotel is just on the border with Gran Via and Malasana, which makes it a perfect location. It is about 10 min walk from both the Royal Palace and Temple of Debod.

The hotel has a gorgeous rooftop terrace perfect for sunset.

Also, the most instagrammable place there is the marble staircase. ๐Ÿ˜

โญ๏ธ 4 star โค๏ธ 8.5 Very Good ๐Ÿ’ฐยฃ76+ per night ๐Ÿฉ Book it

2. 7 Islas Hotel

7 Islas is a gorgeous hotel in the Malasana district and one of the very few that is still run by the family that opened it. It was designed in collaboration with studio Kikekeller. What I really like about this hotel is that it exhibits an art gallery which is free for guests. Every 3 months they exhibit a collection of some new emerging artist.

It is also one of the very few hotels on this list that is pet-friendly. While all rooms are really beautiful, some of the suites are penthouse with a private terrace. ๐Ÿ˜

The location is right in the middle of Madrid, so that both the Royal Palace and Prado Museum are within a 17 minute walking distance.

โญ๏ธ 4 star โค๏ธ 9.0 Superb ๐Ÿ’ฐยฃ110+ per night ๐Ÿฉ Book it

3. Dear Hotel Madrid

Dear Hotel Madrid is a perfect choice, especially if you’re there during summer. It has an amazing rooftop pool that offers 360 degree views of Madrid. ๐Ÿคฉ

It is about 5 min walk from Plaza Espana and 12 minute walk from the Royal Palace and just on Gran Via and at the very edge of Malasana, so it’s right in the middle of everything.

P. S. I don’t remember if I’ve ever seen a hotel with so many reviews and such a great score (12k+ reviews!!).

โญ๏ธ 4 star โค๏ธ 8.8 Fabulous ๐Ÿ’ฐยฃ132+ per night ๐Ÿฉ Book it

Plaza Mayor

Chamberรญ: 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.

Top 3 Hotels in Chamberi

Here’s my recommendation for the top 3 hotels in Chamberi:

  1. InterContinental Madrid, an IHG Hotel

InterContinental Madrid is a former Duke’s palace, so you know the interior is going to be gorgeous! Even though it’s a little bit further away from the city centre, the Ruben Dario metro station is just a 5 min walk and after 3 stops, you are at Gran Via. The interior is a combination of neo-gothic and French Palace style. ๐Ÿ˜

โญ๏ธ 5 star โค๏ธ 8.6 Fabulous ๐Ÿ’ฐ236+ per night ๐Ÿฉ Book it

2. Avani Alonso Martinez Madrid

Avani Alonso Martinez has a cool, eclectic design. It is only a 17 min walk from Gran Via, but it is on a calm tree secluded street.

โญ๏ธ 4 star โค๏ธ 8.3 Very Good ๐Ÿ’ฐยฃ86+ per night ๐Ÿฉ Book it

puerta del sol

3. NH Collection Madrid Abascal

NH Collection Madrid Abascal Hotel was once home of one of Madrid’s wealthiest families. Even though it’s a little bit further away, it is easy to reach both the Royal Palace and Gran Via because Gregorio Maraรฑรณn metro station is only a 5 min walk from the hotel. Some suites have a gorgeous private terrace.

โญ๏ธ 4 star โค๏ธ 8.7 Fabulous ๐Ÿ’ฐยฃ106+ per night ๐Ÿฉ Book it

Lavapiรฉs: 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 (it is not a first time I am visiting a place because I know there’s a piece of art that I love there ๐Ÿ™Š).

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.

Guernica

Top 3 Hotels in Lavapies

Here’s my recommendation for the top 3 hotels in Lavapies:

  1. Catalonia Atocha

Catalonia Atocha is a gorgeous hotel just a few steps away from the Prado Museum and very close to Reina Sofia and El Retiro. It has a rooftop pool, so you can refresh and enjoy the views. Really good value for money.

โญ๏ธ 4 star โค๏ธ 8.7 Fabulous ๐Ÿ’ฐยฃ163+ per night ๐Ÿฉ Book it

El retiro

2. Artrip Hotel

Despite only having 2 stars, Artrip Hotel is a great choice for anyone who loves and seeks simplicity, comfort and accessibility. It is in a trendy area which offers authentic and local experience all while being close to Madrid’s best museums.

โญ๏ธ 2 star โค๏ธ 9.0 Superb ๐Ÿ’ฐ123+ per night ๐Ÿฉ Book it

3. Hotel Mediodia

Hotel Mediodia is another simple hotel 200 m (656 ft) from the Reina Sofia Museum. It also offers a very good value for money.

10k+ reviews definitely speak of high quality and great guests’ satisfaction!

โญ๏ธ 2 star โค๏ธ 8.5 Very Good ๐Ÿ’ฐยฃ80+ per night ๐Ÿฉ Book it

And this concludes our list of Best Areas and Hotels in Madrid.

Which one will be your choice? Let me know in the comments below.

My other Madrid blog posts:
4 Days in Madrid Itinerary โ€“ Things to do in Madrid

Where to Stay in Madrid - 8 Best Areas and Top Hotels

Megi Vorera

Hello! Iโ€™m Magdalena, a Travel Blogger based in London. Originally from Croatia, I moved to London in 2018 to pursue my dreams. From teaching History and Croatian Language & Literature, to working as a Recruiter in Tech, I am now a full-time Travel Blogger & Freelance Content Writer. Being a History Buff, I love exploring historical places and their cultural heritage, so if youโ€™re into Culture Travel, you have come to the right place. I have been to 23 countries across 4 continents and I love sharing my travel stories with you to hopefully educate you, help you plan your travel and inspire you for your next destination.