Where to Stay in Madrid, Spain: The Best Hotels & Areas

Planning a trip to Spain’s capital? One of the biggest challenges will be deciding where to stay in Madrid. While Madrid is a very walkable city, basing yourself in one of the city’s most central areas & neighborhoods will help you get closer to the destinations you want to visit and allow you to see as much as possible.

If you enjoy museums or plan to check out the public plazas in the heart of the city, stay at one of the best hotels in Madrid in the Sol neighbourhood. For those who enjoy shopping at flea markets, the La Latina area may provide the best spot to start your trip.

Unsure of how to find the perfect Madrid accommodations? Start your search with this guide to the best places to stay in Madrid, Spain!

Best places to stay in Madrid: Top hotels, areas & neighbourhoods

The capital of Spain, Madrid offers travelers a ton of history and filled with historic buildings and amazing architecture set amidst modern infrastructure.

Architecture in Madrid, Spain

Madrid spreads out from a central public square called Puerta del Sol. As you leave the centre, you’ll come across a variety of areas & neighbourhoods, each with its own distinct atmosphere. From the trendy Lavapies neighbourhood to art-infused Sol, Madrid is a diverse city that appeals to a variety of travellers.

Whether you have 24 hours in Madrid or a week, you should think about how you want to spend your trip, and then explore the most popular districts and barrios.

The best areas to stay in Madrid include:

  • Sol: The best choice for travellers who love art & history. Sol is also the top place to stay for first-time visitors to Madrid.
  • La Latina: A great area for foodies & shoppers. La Latina is home to the El Rastro flea market and some of the best bars & restaurants in Madrid.
  • Lavapies: The top neighbourhood for experiencing the city’s diversity, including a wide selection of ethnic cuisine and exciting nightlife options.
  • Malasana: A trendy district that’s perfect for hipsters and travellers interested in alternative culture.


✓ Best area to stay in Madrid for art lovers & history enthusiasts

The heart of the city is where you’ll want to stay if you want to explore Old Madrid. Sol is the neighbourhood that occupies most of the Centro district, which includes some of the most popular things to do in Madrid.

Plaza Mayor in Sol

Art connoisseurs will enjoy the Golden Triangle. This trifecta of world-renowned museums includes the Prado, Thyssen, and Reina Sofia Museums.

You’ll also find many large open public squares called “plazas.” The Plaza Mayor, Plaza del Oriente, and Puerta del Sol are all within walking distance if you choose Sol as your home base.

Other attractions include the Royal Palace and its nearby gardens and opera house. You can learn all about the city with guided tours at most of these destinations.

Of course, there’s still plenty of shopping and dining in this neighbourhood. Around every corner, you’ll find another café, restaurant, or a small shop.

Sol also has plenty to offer for architecture admirers. Most of the buildings throughout the neighbourhood are historic sites featuring the Spanish styles of the 18th and early 19th centuries.

Recommended hotels in Sol

Spread throughout Madrid’s unique architectural landmarks in Sol are a variety of the best hotels in Madrid, including five-star hotels, luxury bed & breakfasts, and a number of chic boutique hotels.

Keep in mind that prices may be a little higher compared to some of the other neighbourhoods, but you’re paying for the convenience of staying right next to the historic buildings that populate this section of the city.

  • The Principal Madrid: Centrally located near some of the must-see sites in Madrid, this hotel offers terrace views of the downtown area. The staff is also incredibly helpful. They all speak English and can provide directions, advice, or recommendations during your stay.
  • Intur Palacio San Martin: A boutique-style hotel in a building that has the look and feel of a historic site itself. It’s within walking distance of Teatro Real and Sol Metro Station, and it provides a great base of operations for your trip.
  • Petit Palace Plaza Espana: Right next to several of the top theatres in the area. Fans of dance and performing arts should enjoy a stay at this clean hotel with large rooms. It’s also pet-friendly.
  • Hotel Plaza Mayor: Very close to all the key destinations in Madrid. While the hotel offers limited amenities and features, it happens to be one of the more affordable options in an area full of luxury hotels.

La Latina

✓ Best place to stay in Madrid for foodies & flea market shoppers

If you enjoy fine cuisine and flea market finds, La Latina is where you’ll spend most of your time in Madrid.

La Latina

This charming neighbourhood also features some of the oldest buildings in the city, which makes it another great area for architecture buffs to explore.

La Latina “the Latin Quarter” is also known for its small, winding streets and alleyways. It’s a compact maze of old buildings and stone paths.

As you navigate the tiny streets, you’ll see restaurant after restaurant. The area is home to some of the best restaurants and cafes in Madrid.

You can get a little bit of everything, from churros in the morning to all types of tapas throughout the evening and night.

Besides offering the widest selection of fine food, La Latina offers the widest selection of fine goods. On Sundays, El Rastro opens. It’s a massive flea market with all types of items for sale, from trinkets to scarves.

After the market closes, most tourists and residents head to La Cava Baja. This popular street is lined with bars offering Spanish wines, draft beer, and hot food.

Recommended hotels in La Latina

One of the advantages of staying in the neighbourhood is that you’ll typically find lower-priced accommodations. Unfortunately, finding a family hotel in La Latina isn’t always easy. Most of the accommodations in the area are either hostels or boutique establishments.

  • Posada del Leon de Oro Boutique Hotel: Located above a restaurant, this boutique hotel is just a short walk from the El Rastro flea market that opens every Sunday in the La Latina neighbourhood. It’s a small hotel that caters to your every need.
  • Mayerling Hotel: A small hotel in the heart of Madrid with single and double rooms. You get a free breakfast, and you’re within walking distance of the Plaza Mayor. From there, you can check out all the top attractions in Madrid.
  • Petit Palace Plaza Mayor: A boutique-style hotel with clean rooms and friendly staff. You’re also right above a 24-hour supermarket and around the corner from Plaza Mayor. Just keep in mind that the rooms are a little small.
  • Hotel Ganivet: A popular hotel with many amenities. The hotel also offers a large parking area for those with rental vehicles. The hotel is in the centre of the La Latina neighbourhood and around the corner from a variety of theatres.


✓ Best neighbourhood to stay in Madrid for a multicultural experience & trendy nightlife

For those who want a more adventurous trip to Madrid, you should consider staying in Lavapies. This is one of the most diverse neighbourhoods, as it’s also home to the biggest population of immigrants in the city.


With a variety of cultures living together in one area, the Lavapies neighbourhood provides all types of cuisine. It’s also home to some wonderful Indian restaurants.

Lavapies is one of the edgier neighbourhoods in Madrid. While it’s been known as a high-crime area for many years, it’s starting to become a popular destination for the younger crowd.

In recent years, it’s started to attract hipsters, students, and foreign travellers, especially at night. If you’re seeking a vibrant nightlife scene, you’ll be in the right neighbourhood.

You’re also still within walking distance of all the best sites in Madrid. Lavapies is just south of the Sol neighbourhood. You can spend the day visiting the museums and plazas and the evening exploring the bars of Lavapies.

Recommended hotels in Lavapies

Lavapies is a diverse neighbourhood with an equally diverse selection of hotels to choose from. You can stay in a charming hotel with a rooftop restaurant and a view of the city or enjoy modern accommodations at an upscale luxury hotel. There are also budget options for travellers who would rather save their money for shopping.

  • Artrip Hotel: A recently renovated boutique hotel. The modern rooms are relatively cramped, but you’ll probably spend most of your time exploring the vibrant Lavapies neighbourhood. You’re also just a stone’s throw from Lavapies Metro Station.
  • Catalonia Atocha: A highly-rated hotel with a hot tub on the roof! You also get a great view of the city and can easily walk to any of the popular landmarks in Madrid. In fact, you are just a short walk from world-famous museums and some of the most visited markets.
  • Casual Madrid del Teatro: Often described as a quirky hotel, this location matches the charm of the Lavapies neighbourhood. It is right next to the Reina Victoria Theatre and just 500 yards from Calle de Carretas shopping street.
  • Hotel Paseo Del Arte: A luxury hotel with convenient access to the Golden Triangle of Art and Atocha Metro Station. The hotel also has its own bar and restaurant, along with a long list of amenities to help you feel at home.


✓ Best district in Madrid for eclectic shoppers & music lovers

Malasana is another trendy neighbourhood to add to your search for where to stay in Madrid. It was a big part of the counterculture movement in the 1980s, which came a decade or two after most Western countries had already experienced their moment of free love and recreational drug use.


The neighbourhood still includes some reminders of the more provocative era, such as graffiti on some of the buildings and a hipper vibe compared to some of the older neighbourhoods.

Today, the neighbourhood attracts fans of music, beer, and shopping. It’s become a family-friendly neighbourhood during the day and one of the best spots for alternative music in the evening.

The Malasana area is full of bars that offer inexpensive beer and alt-rock music. It’s a vibrant area and a popular destination for students from the local universities.

Malasana is also a great place to go shopping during the day. You can find vendors selling vintage clothing, name-brand clothes, and bohemian dresses.

Recommended hotels in Malasana

Unless you plan to stay in a hotel with shared bathrooms, you may pay a premium price for a hotel in Malasana. This trendy neighbourhood has a lot of four-star and five-star hotels that cater to those who prefer luxury travel. You’ll also find some quaint boutique hotels with convenient access to the nearest metro station.

  • Hotel Atlantico: Arguably the most popular hotel in the area. It’s a beautiful hotel inside a historic building that offers wonderful views of the city from the rooms. The top floor features a patio that is open to guests, while the ground floor provides quick access to several metro stations.
  • 7 Islas Hotel: A top-rated hotel with 24-hour room service. Like most of the hotels near downtown Madrid, it’s a boutique operation with friendly staff. They can help you with just about everything, including providing helpful directions or even booking restaurant reservations. The hotel is a short stroll from Gran Via Station Metro Station and several great shopping areas.
  • Petit Palace Triball: A boutique-style hotel with free coffee and pastries in the morning. It’s in the heart of the Malasana neighbourhood and within walking distance of Sol Metro Station. It’s also just a few hundred yards from four different shopping streets with designer and internationally popular brands, such as H&M, Nike, and Zara.
  • Best Western Hotel Los Condes: A quality hotel with great prices. Downstairs you’ll find a bar and cafe. When you step outside, you’re within walking distance to several of the most popular theatres in the area, including Rialto Theatre and Arlequin Theatre. Most rooms also offer a great view of Madrid.

Ryan O'Rourke is a seasoned traveler and the founder & editor of Treksplorer, a fiercely independent guide to mid-range luxury travel for busy people. With over 20 years of extensive travel experience, Ryan has journeyed through over 50 countries, uncovering hidden gems and sharing firsthand, unsponsored insights on what to see & do and where to eat, drink & stay. Backed by his travel experience and in-depth research, Ryan’s travel advice and writing has been featured in publications like the Huffington Post and Matador Network. You can connect with Ryan on Twitter/X at @rtorourke.

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