Where to Stay in Madrid: The Best Neighborhoods and Hotels

Wondering where to stay in Madrid, Spain for your first visit? You’re in the right place!

I’m a travel blogger that lives in Spain, and after spending a lot of time in Madrid, I’ve gotten to know the city’s neighborhoods and what makes each one different.

In this guide, I’ll break down the best areas to stay in Madrid, explain what each neighborhood is like, and share my top hotel picks in each one.

Whether you want to be near museums, shopping, or local restaurants, you’ll find spots that match the kind of trip you’re planning. Let’s get started!

Madrid Neighborhoods Map

Before we begin, here’s a map to give you an overview of the best neighborhoods to stay in Madrid. You can use this as a reference while reading through the guide.

The great thing about Madrid is that it’s a very walkable city so you can easily walk between neighborhoods in just 15-20 minutes.

And if you’re not up for walking, there’s many different public transportation options like the metro and buses that make it very easy to get around.

Best Areas to Stay in Madrid Spain

These are the best areas in Madrid Spain to stay:

1. Gran Via

If it’s your first time visiting Madrid , I definitely recommend staying around Gran Via, which is one of the city’s main shopping streets.

I stayed in this area on my last trip and loved how safe and convenient it felt. It’s a great base for exploring the city since you’re within walking distance of pretty much all the major sights like Plaza Mayor, the Royal Palace , El Retiro Park, and the Prado Museum.

The grand architecture gives the area that classic Madrid look, and there are some really nice hotels around here. It’s also super easy to reach from both the train station and the airport.

Just keep in mind that this area is very touristy. It’s often compared to Times Square, with big crowds, chain restaurants, and lots of international stores.

But you’re only a short walk away from more local neighborhoods so you can still enjoy the convenience without missing out on the more authentic side of the city.

Basically, if you want to be in the middle of everything and near all of the top Madrid attractions , Gran Via is the best area to stay in Madrid.

Best Places to Stay in Gran Via

Here are a few of my top recommendations for where to stay in the Gran Via area:

  • Hotel Montera Madrid : I stayed here on my last trip to Madrid and can’t recommend it enough! This boutique luxury hotel is super central, has gorgeous decor, and has an incredible rooftop bar and pool.  You can read my full Hotel Montera Madrid review for all the details!
  • NH Collection Madrid Gran Vía : Right in the center of it all, this hotel has clean, modern rooms and a rooftop restaurant with views over the city. Super convenient if you’re planning to walk to most places.
  • Hyatt Centric Gran Via : This hotel puts you right on Gran Via with big rooms, a rooftop bar, and easy access to shopping and sightseeing.

2. Sol

Sol is one of the most central spots in Madrid and marks the exact city center–literally.

At the heart of the neighborhood is Puerta del Sol, one of Madrid’s main plazas and a major meeting point.

It’s just south of Gran Via, so the two areas are really close and often blend together when you’re exploring on foot.

Staying here puts you within easy walking distance of major sights like Plaza Mayor, Mercado de San Miguel, and even the Royal Palace .

The location couldn’t be more convenient, and it’s well connected by public transportation, which makes getting around super easy.

Just like Gran Via, it’s one of the busiest parts of the city. You’ll find lots of tourists, street performers, chain restaurants, and big crowds throughout the day.

But if you want to be right in the heart of everything and don’t mind a bit of noise, Sol is a great place to stay.

Best Places to Stay in Sol

Here are a few of my top recommendations for where to stay in the Sol area:

  • Pestana Plaza Mayor Madrid : This stylish hotel is set right on Plaza Mayor in a historic 17th-century building. It has a rooftop pool, a spa, and some rooms even have balconies with views of the plaza.
  • B&B Hotel Madrid Centro Puerta del Sol : This is a great option just steps from Puerta del Sol. The rooms are simple and modern, and you really can’t beat the location for the price.
  • UMusic Hotel Madrid : This fun, music-themed hotel is right next to the historic Albéniz Theater. It has sleek rooms, a rooftop pool, and even live performances right at the hotel.

3. Malasaña

​​Malasaña is a great area to stay in Madrid if you want something that feels a bit more local and laid-back.

It’s on the northwestern side of the city, a little farther from the main tourist sights, but still totally walkable.

The neighborhood has a fun, creative vibe with lots of outdoor plazas, indie boutiques, vintage shops, and casual cafes.

It’s a great place to wander around and get a feel for everyday life in Madrid without the heavy crowds.

It’s definitely quieter and less touristy during the day, but keep in mind that it’s also known for its nightlife.

Some streets can get pretty noisy at night, so it’s a good idea to check hotel reviews and see if noise is mentioned.

If you want to stay somewhere with character that feels more lived-in than polished, Malasaña is a solid option.

Best Places to Stay in Malasaña

Here are a few of my top recommendations for where to stay in the Malasaña area:

  • Dear Hotel Madrid : This super cute boutique hotel is right at the start of Gran Via near Plaza de España, and the rooftop terrace is a total highlight with amazing views and a small plunge pool. The rooms are bright, modern, and perfect if you’re looking for a stylish place to stay.
  • Sonder Malasaña : These cute, apartment-style stays are located right into the heart of Malasaña. The decor is fun and retro, and you get a little kitchen, which is great if you want to feel more at home.
  • Tribu Malasaña : A modern, low-key aparthotel just off the Tribunal metro stop. The rooms are clean and comfy with kitchenettes, and you’re surrounded by some of the best bars and cafés in the neighborhood.

4. La Latina

La Latina is one of the best areas to stay in Madrid if you’re looking for a more authentic, local feel.

It’s in the southwestern part of the city, but still within easy walking distance of major spots like Plaza Mayor, the Royal Palace , and Mercado de San Miguel.

The neighborhood is full of charm with narrow streets, outdoor restaurants, and some of the best tapas bars in Madrid.

It’s a popular area with locals, especially in the evenings, but it doesn’t feel nearly as crowded or touristy as Gran Via or Sol.

It’s a great place to stay if you want to experience a more relaxed side of the city while still being close to the main sights.

Just be ready for some uphill walks and winding streets–it’s part of the charm!

Best Places to Stay in La Latina

Here are a few of my top recommendations for where to stay in the La Latina area:

  • L&H La Latina Selection : These modern apartments are right in the middle of La Latina, super close to Plaza Mayor and the Royal Palace. They’ve got kitchenettes, which is great if you want a little more space or plan to cook a few meals.
  • Posada del León de Oro Boutique Hotel : This small boutique hotel is on Cava Baja, one of the best streets for tapas in Madrid. The rooms are a mix of old and new, and there’s even a glass floor in the restaurant where you can see part of the old city walls.

5. Barrio de las Letras

Barrio de las Letras, or the Literary Quarter, is one of the most historic neighborhoods in Madrid.

It was once home to famous writers like Cervantes and Hemingway, and you’ll see quotes from classic Spanish literature engraved into the streets.

The location is super central, making it easy to walk to top sights like the Prado Museum, El Retiro Park, and Plaza Mayor. If you’re into art, history, or literature, this is a great area to base yourself.

There are lots of restaurants, tapas bars, and little shops scattered throughout the neighborhood, and it has a lively feel without being too overrun with tourists.

Just be aware that it can get noisy at night, especially on the weekends, so check hotel reviews if you’re a light sleeper.

If you want a central location with some historical charm, Barrio de las Letras is a great pick.

Best Places to Stay in Barrio de las Letras

Here are a few of my top recommendations for where to stay in the Barrio de las Letras area:

  • Room Mate Collection Alba, Madrid : This boutique hotel in the Literary Quarter is central, stylish and has a fun mix of classic charm and modern touches.
  • limehome Madrid La Bolsa : These apartment-style stays are super close to Puerta del Sol and come with kitchenettes and coffee makers. Great if you want more space and a place that feels a bit more like home.
  • Vincci Soho : This hotel is in the Las Letras neighborhood and is made up of a few old buildings that have been updated with a modern feel. There’s a quiet little courtyard that’s nice for taking a break after a day out.

6. Salamanca

Salamanca is one of the most upscale neighborhoods in Madrid.

It’s located on the northeastern side of the city, just above Retiro Park, and has a polished, elegant feel that’s noticeably different from other areas.

When I was walking through it, it honestly gave off major Tribeca vibes with its beautiful buildings, stylish boutiques, and quiet corner wine bars.

Everything feels clean, safe, and very put-together. It’s definitely one of the wealthier parts of the city.

It’s a bit farther from the main tourist sights, so if you stay here, you’ll probably end up using the metro or buses to get around.

But if you're looking for a calm, refined place to stay away from the crowds, Salamanca is a great choice.

Best Places to Stay in Salamanca

Here are a few of my top recommendations for where to stay in the Salamanca area:

  • TÓTEM Madrid : In the heart of Salamanca, TÓTEM feels sleek and stylish without being over the top. If you're into good design and want something a little more polished, this is a great pick.
  • Wellington Hotel & Spa Madrid : This classic hotel near Retiro Park has a spa, outdoor pool, and a bit more of an old-school luxury feel. It’s in one of the fancier areas of Madrid and has everything you’d want for a more relaxed, high-end stay.
  • Catalonia Goya : Just a short walk from Retiro Park, this hotel is a solid mix of comfort and convenience. It has a small outdoor pool and is close to shops, restaurants, and public transportation.

7. Chueca

Chueca is a lively, welcoming neighborhood just north of Gran Via.

It kind of blends into Malasaña, so the two share a similar feel, but Chueca has its own personality and charm.

It’s known for being LGBTQ-friendly and has a fun, inclusive vibe with lots of bars, clubs, and good restaurants.

The nightlife here is a big draw, so it's great if you’re looking to go out.  But just be aware that some streets can get noisy, especially on weekends.

The location is still central and you can walk to most major sights pretty easily.

If you want to stay somewhere upbeat and walkable with a strong local feel, Chueca is a solid option.

Best Places to Stay in Chueca

Here are a few of my top recommendations for where to stay in the Chueca area:

  • Only YOU Boutique Hotel Madrid : This stylish hotel in Chueca is set in a restored mansion and has a really cool interior. It’s a great option if you want something trendy with good service and a central location.
  • 7 Islas Hotel : Just off Gran Via, 7 Islas mixes modern design with an artsy vibe. The rooms are bright and comfortable, and the hotel has its own little art gallery in the lobby.
  • Vincci The Mint : This fun hotel is right on Gran Via and has a rooftop bar that feels more chill than flashy. It’s a good option if you want a unique stay that’s still central and comfortable.

Tips for Booking Your Stay in Madrid

Here are a few helpful tips to keep in mind when booking your accommodation in Madrid:

  • Check the reviews for noise complaints: Some areas (especially around Chueca and Malasaña) can get loud at night due to bars or nightlife. Always check reviews to see if other guests mention noise before you book.
  • Make sure there's heating and air conditioning: Madrid can get really hot in the summer and cold in the winter, and not every apartment or older building has both. Double-check the listing so you’re not stuck in an uncomfortable room.
  • Check for an elevator: Many buildings in central Madrid are older and may not have elevators. If you're staying on an upper floor and have heavy bags or mobility concerns, be sure to confirm this in advance.
  • Book early for better options: Madrid is popular year-round, especially during spring, early fall, and major holidays. Booking early gives you more choices in the best neighborhoods and often better rates too.
  • Be prepared for some hills: Certain parts of the city, especially around La Latina, have a few steeper streets. It's something to keep in mind if you're walking a lot or carrying luggage.
  • Be aware of August closures: In August, some smaller shops and restaurants close as locals leave the city. It’s still a fun (and hot) time to visit, but if you're coming then, make sure your accommodation has strong air conditioning.
  • Look for luggage storage options: Whether you arrive early or have a late train or flight, it really helps if your hotel or rental can hold your bags. Some listings include this, or you can use nearby storage services if needed.

Final Thoughts: Best Places to Stay in Madrid Spain

I hope this guide helped you figure out where to stay in Madrid for the first time!

Whether you want to be right in the center, explore quieter local neighborhoods, or stay somewhere a bit more upscale, there’s a part of the city that will fit what you're looking for.

If it’s your first time visiting, I’d still recommend staying around Gran Via or Sol for easy access to the main sights and a super walkable location.

No matter where you stay, Madrid is easy to navigate and packed with amazing food, museums, shopping, and hidden spots to discover.

READ NEXT:

  • Hotel Montera Madrid Review: Is This Luxury Hotel Worth It?
  • 25 Fun Things to Do in Madrid for First-Timers
  • Madrid 3 Day Itinerary: Best Things to Do, See, & Eat

This article originally appeared on Splendidly Spain .