Where To Stay in Madrid: The Best Neighborhoods to Stay in Madrid
A Guide to accommodation in Madrid: The Best Areas and hotels to Stay in Madrid for a city trip
For too long, Madrid was overshadowed by its eternal competitor Barcelona.
However, in the last few years, Madrid has become increasingly popular among travelers for city breaks, shopping sprees, cultural visits, or outdoor activities.
Madrid is huge in size and it might be overwhelming when looking for the best neighborhoods to stay in Madrid, or picking the best hotels in Madrid to suit your needs.
Madrid is not only the perfect weekend city trip but also perfectly suited for extended stays, including day trips to Segovia, Toledo, Avila, or other surrounding areas.
Even though Madrid doesn’t have the beaches of Barcelona, it has tons of other attractions that make the Spanish capital the perfect getaway – often at more competitive rates than its Catalan competitor on the coast.
After living and working for 2 years in Madrid, I get frequently asked what is the best place to stay in Madrid or where to stay in Madrid area nearby.
I’d say that it largely depends on the type of traveler you are and the expectations of your visit to Madrid.
Well, here it goes: The Ultimate Guide on The Best Neighborhoods to Stay in Madrid, one of the most vibrant European capitals out there.
Whether you are looking for the best budget hotels in Madrid, the best family hostels in Madrid, or amazing bed and breakfasts in Madrid, this guide will help you find the perfect place!
Thanks to affiliate links, I pay my bills. If you make a purchase through them, I may receive a small commission (for which I’m deeply grateful) at no cost to you. All opinions are always mine. Merci!
Useful Travel Information About Madrid
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Best Neighborhoods in Madrid To Stay If You Are A Party Animal
Malasaña is the hipster neighborhood of Madrid, located just behind the most important avenue Gran Via.
It boasts numerous trendy bars and its quaint cobbled streets invite for long walks in the afternoon. It’s one of the most prominent Madrid neighborhoods with a very specific athmosphere.
For ages, Malasaña has been the creative and youngest neighborhood. By far, it’s my favorite neighborhood and a visit to Malasaña is a MUST when I visit Madrid.
It just has such positive, creative energy! And some of the best budget hotels in Madrid!
However, Malasaña is also a great location to party, and so full of great motels in Madrid to suit anyone looking for a good time.
There are countless bars and clubs which attract a wide range of music styles.
And it’s mandatory to taste some of the new tapas creations – one of the traditional must eat foods in Madrid – in the bars of Malasaña before clubbing.
Malasaña is definitely one of the coolest neighborhoods in Madrid and for party-lovers the best neighborhood to stay in Madrid but not that much for people looking for where to stay in Madrid with kids.
Some of the most popular clubs in Malasaña are:
- El Rey Lagarto: for metalheads
- La Via Lactea: indie, rock, britpop, and electronica
- El Penta: spanish music from the 60s -70s
- Coconut Bar and El Fabuloso: eccentric
- Terraza Gymage: fabulous rooftop bar on top of the gym in the heart of Malasaña
Best Places To Stay in Malasaña, Madrid
2. La Latina
La Latina has a long tradition of nightlife.
The barrio (neighborhood) is not only famous for its delicious and affordable tapas, but also for its vibrant clubs.
For those who love to be out, La Latina is one of the best neighborhoods to stay in Madrid, and has some of my favorite cheap Madrid hotels.
The best way to discover the pleasures of La Latina is to change bar after each drink. Indeed every bar has a very different mood, different tapas and drink creations.
It would be such a shame to stay only in one bar. (When I moved from Madrid, I took this impulsion with me: never more than 1 drink in the same bar!).
The bests streets for tapas are Cava Baja and Cava Alta. You can’t skip La Latina while looking for the best area to stay in Madrid, Spain.
Some of the most popular clubs in La Latina are:
- Contraclub: live music ranging from varied styles such as jazz, hip-hop and flamenco
- Marula: international music
- Corral de la Moreria: flamenco & dinner
Best Places To Stay, Madrid La Latina Area
Best Madrid Neighborhoods for Luxury Holidays
1. Barrio de Salamanca
Salamanca is Madrid’s “poshest”, more exclusive neighborhood.
It was originally designed for Madrid’s aristocracy and bourgeoisie. It’s thus the best neighborhood to stay in Madrid for a luxury getaway.
You’ll see the most beautiful mansions sharing the quarter with international, luxury and designer brands.
Some of Madrid’s finest restaurants are at home in Barrio de Salamanca which offers very chic dining options with the finest Iberian products.
The most expensive and exclusive streets are Calle de Serrano, Calle de Goya, and Calle de Velásquez.
You’ll easily find an upper-scale hotel for a perfect luxury stay in Madrid.
Best Places To Stay in Salamanca, Madrid
2. Paseo del Prado
Madrid’s other exclusive quarter is the historic area of Paseo del Prado. It is one of the main boulevards of Madrid and particularly famous for its great museums.
No wonder that the area is also known as “Triangle of Art”.
It’s perfect for a stroll under its tree-lined promenade on a lazy afternoon and you’ll be amazed by the intriguing, historic house fronts.
Most of them are of major artistic and historical interest, being erected in the eighteenth century.
Some of the most renowned and prominent Madrid hotels are located at or near the Paseo del Prado. It’s the perfect location to enjoy a more exclusive side of Madrid.
Not surprisingly, Paseo del Prado has some of the best hotels in Madrid for art lovers.
Best Places To Stay near Paseo del Prado
Westin Palace Hotel ***** (check out their “Opera Brunch” on Sundays !)
Best Areas to Stay in Madrid Spain for a Quiet City Break
Even though Madrid is one of the liveliest and vibrant cities I visited in Europe, it also has more quiet areas which are perfect to unwind and relax.
1. Retiro Neighbourhood
The Retiro neighborhood is located right next to Madrid’s most famous park, which you’ll catch a view of from some of the neighborhood hotels.
It is a rather traditional, a bit chic neighborhood, which is particularly answered on what neighborhood to stay in Madrid for families.
Due to being quieter, it’s also great for a romantic getaway, and you’ll find one of the best hostels in Madrid for couples!
As it’s close to one of Madrid’s largest green areas, it is quite a coveted quarter. The area is mostly residential but has gorgeous historic house fronts.
Even though hotels are a bit outside from the center, but easy to reach by public transport, it will provide you the retreat from the buzzing streets of Spain’s capital.
For those who love a relaxing stay, El Retiro is one of the best neighborhoods to stay in Madrid.
Best Places To Stay in Retiro, Madrid
Chamberí used to be the quarter for the older, more traditional Madrileños. Not many visitors included Chamberi into their Madrid 24h-itinerary.
However in the last years, countless new eateries popped up and little designer shops are opening, making Chamberí the new place to be.
Some of the places you can’t miss in Chamberí are:
- Perrachica: famous all over the town for its brunch
- Cine Verdi: nostalgic, vintage cinema
- La Maquina de Chamberi: amazing seafood and warm atmosphere
- La Vaquería Montanesa: local, organic food, a local’s foodie hotspot
However, the quarter still preserved some of its traditional, bourgeois atmospheres which makes Chamberi the perfect place to spend a relaxing city break.
Definitely keep an eye on it when looking for the best neighborhoods to stay in Madrid.
For anyone hoping to stay in Madrid long term, Chamberí District is also one of the best places to live in Madrid, Spain.
Best Places To Stay in Chamberí, Madrid
Best Neighborhoods To Stay in Madrid for Shopping City Break
1. City Center Madrid
I love shopping in the city center of Madrid.
Not only will you find here all the international brands (around Gran Via, Callao, Puerta del Sol, etc.) but you’ll also find some very old, historic shops which have a long tradition in Madrid.
If you fancy a shopping trip, El Centro (city center) is one of the best neighborhoods to stay in Madrid and definitely the best place to stay in Madrid for shopping.
They mostly sell artisan, handmade products and are thus the perfect, valuable souvenir from your stay in Madrid. The city center is also the best place to stay in Madrid when you only have 1 day in Madrid.
Some of these traditional shops that can’t be missed are the following:
- Casa de Diego: Puerta del Sol, selling and producing fans for over 150 years
- Justo Algaba: Sastrería Torera, bullfight tailor
- Sombrerería Medrano: oldest hatter in Spain, hats made in Spain since 1832
- Juan Alvarez: luthier making Spanish guitars since 1945
- Casa Hernanz Alpargateria: a must when I visit Madrid. Get canvas shoes at the legendary shop operating since 1840. Beware of the queue!
Luckily, if you are also a shopaholic, some of the best hotels in Madrid can be found in this neighborhood!
Best Places To Stay in City Center of Madrid
2. Salamanca & Malasaña
Malasaña is definitely my favorite place to shop! There are so many quirky, original and creative shops that it will be very hard to choose where to start.
On top the area is changing a lot, thus you’ll find different stores than in your previous visit.
The location, the narrow streets of Malasaña provide as well a great setting for shopping.
Thus you should definitely consider Malasaña when looking for the best neighborhood in Madrid.
Some of my favorite shops in Malasaña are:
- Vintage Shopping: Miss Vintage, Flamingos Vintage Kilo, El Templo de Susu, Magpie, La Mona Checa, Ekeko
- Antigua Casa Crespo: traditional Spanish shoe shop since 1863 (made in Spain)
- Williamsburg Vintage Clothes: vintage clothes
- La Intrusa: original gift shop
Malasaña might get a bit loud during the weekends, thus I recommend staying in Salamanca neighborhood, which has some of the best Madrid hotels.
Shopping in the chic quarter of Salamanca is definitely an exclusive experience. It’s one of the most stylish districts, featuring many international designer brands.
However, you’ll also find luxury Spanish brands for great prices!
The best streets in Salamanca neighborhood for luxury/fashion shopping are:
- Calle Serrano (Tesla, Kenzo, ZARA, Prada, Loewe, Armani , Chopard , Yusty, etc.)
- Calle Ortega y Gasset (Christian Dior, Tiffany & Co.,Hermès, Chanel, etc.)
- Calle Jorge Juan
- Calle Ayala
Where to stay – Madrid Shopping: Malasaña & Salamanca
Where is the Best Place to Stay in Madrid For Hiking & Outdoor Holidays?
1. El Escorial
Only a few people that travel to Madrid include going hiking or doing outdoor activities as their first plan.
Indeed most see Madrid as a huge city, being impossible to feature outdoor leisure activities. Well, you couldn’t be more wrong.
If hiking is in your plans, this is the best place to stay. Madrid, El Escorial area is the departure point of many hiking routes.
El Escorial is it a perfect day trip from Madrid!
Due to its monumental monastery and delicious gastronomy and natural setting in the mountains, El Escorial is a coveted destination for hikers, trekkers, birders, and climbers.
If you’re going to be out wandering around all day, just make sure you stay hydrated with these tips!
You’ll also find in this area some of the best best hostels in Madrid for couples on a romantic, but adventurious getaway.
El Escorial is about 1h ride with the cercanías train departing from Madrid City Center.
And the perfect reward for your physical efforts will be a delicious, traditionally Castilian meal and some of the best food in Madrid.
Best Places To Stay in El Escorial, Madrid for Outdoor Activities
Guadalajara is a town located east from Madrid which is easy to reach by cercanías railway from Madrid.
Guadalajara is close to the mountains and surrounded by protected natural spaces. It’s thus the perfect departure point for excursions and treks.
Guadalajara is perfectly connected with the city center of Madrid by the cercanías railway.
If you stay in Guadalajara, you can’t miss visiting the famous “black Villages“. Those villages are the cutest and it looks like time stands still in them.
Other places worth visiting are the villages of Brihuega, Atienza and Sigüenza.
As usual, food in the rural places of Spain is delicious and the province of Guadalajara is particularly famous for its roast lamb or kid.
Best Places To Stay in Guadalajara, Madrid
3. Manzanares El Real
Manzanares El Real was one of my favorite weekend excursions. The village itself is very cute (again, amazing food here!) and boasts a gorgeous castle which is considered the best-preserved one in the Community of Madrid.
The surroundings of Manzanares El Real are a declared Biosphere Reserve by the UNESCO.
The nearby La Pedriza area, dotted with unique granite peaks, is perfect for hiking and climbing activities.
Another great hiking area is Cuenca Alta Manzanares Park. The lake next to the village, Santillana Reservoir is perfect for fishing and cycling.
Best Places To Stay Near Madrid for Outdoor Activities
Best Location to stay in Madrid as a Backpacker
1. La Latina
Even though Madrid is the capital of Spain, one of the most touristy countries in the world, the town remains a very affordable destination.
As long as you pay attention to where you stay, you will be able to find some of the best hostels in Madrid for affordable prices.
Indeed the neighborhoods of Madrid and their prices vary a lot. If you are traveling on a budget, La Latina is one of the best neighborhoods to stay in Madrid.
For many years La Latina neighborhood has been known for its good price-quality relationship and where to stay in Madrid for cheap.
It’s not only a very young neighborhood with many historic monuments, but it’s also close to the city center and has some of the best tapas restaurants in Madrid.
The area hosts many hostels which makes it the best place to stay in Madrid for backpackers who want to make the most of their trip and their money.
You will find great options for solo backpackers, as well as some of the best family hostels in Madrid in La Latina.
Best Hostels To Stay in La Latina, Madrid
Lavapies neighborhood is located further south from La Latina, but still in what is considered the city center of Madrid.
Historically Lavapies was inhabited by the lower classes, but nowadays Lavapies is probably the most multicultural neighborhood in Madrid.
This neighborhood has some of the best budget hotels Madrid has to offer, but it’s also full of fascinating culture.
You can easily find shops selling typical products from very specific African countries, or other products from around the world.
When looking for a quirky side of Madrid, Lavapies is one of the best neighborhoods to stay in Madrid.
I particularly like Lavapies for its eclectic energy and having the best food (for cheap money) from all over the world.
Due to its affordable prices, Lavapies is where to stay in Madrid on a budget, and it’s also a great place to meet other travelers.
Best Madrid Hostals To Stay in Lavapies District
Best Neighborhoods in Madrid for AirBnB Stays
Do you want to explore Madrid like a local? Then, there is no better way than by staying in an Airbnb.
In the last years, plenty of cool AirBnBs are popping up with amazing options for Madrid holiday rentals.
There is an Airbnb in Madrid for any budget which makes it the best area to stay in Madrid for tourists.
Whether you are a backpacker or a stylish interior design is important for you, there is an Airbnb in Madrid that will suit your needs.
The best AirBnBs can be found in the neighborhoods of Malasaña, La Latina and in Centro.
Best AirBnBs in Madrid
- Most Stylish AirBnB – Terrific Location with Video Projector and Netflix
- Best Cheap AirBnB in Madrid – Design loft in the heart of Madrid
- Best Airbnb for Families – La Maker House: Home of the Future. Local & Green
- Best Airbnb in Madrid for Group Travelers – Velazquez Manor House
- Best Airbnb in Madrid for Luxury Travellers – Simple and Chic Apartment with free parking
Best Neighborhoods for Bed and Breakfasts in Madrid
B&Bs are a great choice if you want breakfast taken care of every morning.
It can be stressful trying to find the perfect breakfast place somewhere new, and it’s nice to just wake up to a home-cooked meal or buffet.
If you want to stay at a bed and breakfast, Madrid’s El Centro district is the best area in Madrid to stay.
Nearly all the best B&Bs are here, and you’ll find a wide range of options of bed and breakfasts in Madrid no matter your budget.
Another upside to staying at a B&B in Madrid is that they tend to be smaller and more personal, so you can get recommendations from the staff for fun alternative things to do in Madrid.
My favorite Bed and Breakfast in Madrid – Hostal Artistic B&B***
Best affordable B&B – Cálamo Guesthouse
Best Luxury B&B – Catalonia Las Cortes****
Most Stylish B&B – Room Mate Alba****
Best B&B in Madrid for families – Posada del León de Oro Boutique Hotel****
Local’s Guide: My Favorite Neighborhoods to Stay in Madrid
After calling Madrid my home for almost 2 years, in several neighborhoods, I want to show you my favorite neighborhoods and places to stay in Madrid according to the expectations of your visit.
You can also find here in this Madrid neighbourhood guide where to stay in Madrid with family.
In order to give those queries a detailed answer, I decided to write this in-depth guide on where to stay in Madrid Spain.
Accommodation places are categorized by location and budget, each time in the best neighborhoods in Madrid Spain.
So before you head to Madrid, first you need to decide if you want a cultural city trip, a quiet city break, luxury holidays or outdoor adventures. Because you can even go skiing in Madrid!
The opinions of this post are based upon my professional experience in the Spanish tourism sector and upon my stay in Madrid during which I visited numerous hotels.
In total, I lived 2 years in a row in Madrid but visited several times before and after.
Altogether I stayed in Madrid for a minimum of 3 years, so I am comfortable saying these are the best places to stay and live in Madrid, Spain!
Short FAQ about Where to stay in Madrid
When is the Best Time to Visit Madrid?
My favorite time to visit Madrid is in spring (early March – beginning of June). After a long and cold winter, the entire town starts to bloom and people invade the terraces on the quaint plazas. On top, these months are full of sunshine and relatively warm temperatures whereas Northern Europe is still freezing.
Another option to visit Madrid is in autumn. Again, the town boasts long days filled with sunshine and warm climate whereas it’s getting cold again in Northern Europe.
I wouldn’t recommend visiting Madrid in summer as temperatures can easily reach 40°C! On top, during the afternoon many shops will close and the streets are empty until 7 pm. Most madrileños travel to the coast in July/August in order to escape the heat. In spring and autumn, the temperatures are bearable.
Even in winter, Madrid is a nice getaway. Even though it might get quite cold (Madrid has a continental climate) you have a broad cultural and leisure offer. You might even consider going skiing in the mountains surrounding Madrid (like in Puerto de Navacerrada).
Other perfect occasions to visit Madrid are its traditional festivals like San Isidro (15th of May), La Paloma (12-15th of August) or San Lorenzo Verbena (9-11th of August).
What To Do in Madrid?
Indeed there are countless reasons why to visit Madrid: visit the numerous museums, go for artisan shopping, tapas gastronomy in Madrid or even hiking.
The main reasons why you should definitely visit Madrid are the following:
- Museums: Madrid boasts a mere infinite number of museums. Even in the 2 years, I lived there, I didn’t manage to visit them all. The most famous one is the Museo Nacional El Prado. If you visit only 1 museum in Madrid, El Prado is the one! The permanent collection includes the most important names of the Spanish history of art: El Greco, Velázquez, Hieronymus Bosch, Goya… to name only a few. Read more about the best museums in Madrid.
- Food: Madrid is the ultimate travel destination for foodies. Read more about traditional food to eat in Madrid here.
- Theaters: Madrid has one of the most lively theater scenes in the Spanish-speaking world. You should have a decent level of Spanish in case you want to assist one. There is a very broad range of spectacles that you can assist.
- The Teatro Real, opera of Madrid is probably the most spectacular building
- Teatro de la Abadia (a former church converted into a theatre in Chamberí)
- Teatro de la Zarzuela (best place to enjoy Spanish lyrical tradition) and many more.
- You should also look for the small, private theaters in La Latina and Malasaña neighborhood.
- Shopping: Shopping in Madrid is an experience on its own. The best is that the shops vary with the neighborhood. Luxury shopping is in Salamanca, hipster shops are in Malasañaa and edgy designer shops in Chueca. What I particularly like about Madrid, is that you can still find traditional, very ancient shops.
- Football: Some only visit Madrid for its infamous football clubs, Real Madrid and Atlético Madrid. Indeed assisting a football match of one of Madrid’s legendary clubs is a spectacle on its own. The entire town is in tension and following the football match from TV screens in crowded bars or directly from the football stadium Bernabeu. If possible, even if you’re not a football fan, include a Real Madrid football match to your visit to Madrid. It will be a once in a lifetime experience. – Get here your Bernabeu Stadium Tickets
- Hiking: Not many associate Madrid with hiking or outdoor adventures. Well, Madrid is surrounded by high mountains in the north and has an extended network of great hiking trails. There are trails for every level and the Mediterranean nature is simply gorgeous. – Book Here Your Hiking Day Trip from Madrid
- Day trips from Madrid: You could easily travel to Madrid and spend your entire trip visiting the quaint and historically important surrounding towns.
- Toledo, only 1 hour by train, the former capital of the Spanish empire,
- El Escorial has one of the most important abbeys in Europe
- The Royal Palace of Aranjuez
- Segovia, world-famous for its fortress and Roman aqueduct
- Avila, with its perfectly maintained medieval city wall
- Cuenca famous for its hanging houses
- Highlights from Don Quijote in Castilla La Mancha
- Cordoba by high-speed train
Book here your Skip-The-Line Tickets to Madrid’s most popular attractions
Accommodation Map for the Best Areas to stay in Madrid
I hope this Madrid neighborhood guide helps to familiarize yourself with the best neighborhoods to stay in Madrid.
Do you still have doubts? Please do not hesitate to contact me. I am sure there’s a place in Madrid that perfectly meets your needs.
Have you already been to Madrid? I would love to hear about your favorite places to stay.
Before You Go: Top Tips for your Trip
- You’ll snap tons of photos and I love to take my GoPro in order to shoot even in extreme situations.
- Make sure to wear comfortable walking shoes and hiking sandals when traveling to warm countries. Consider trying some of these eco-friendly vegan hiking boots.
- Sunscreen is key! I always take with me my eco-friendly sunscreen by Thinksport.
- I always carry a light rain jacket, just in case. Pack smart with these organic cotton clothing companies.
- Be environmentally friendly and get one of these awesome backpacks made from recycled materials.
- Get in the mindset with these amazing wilderness survival books.
- Travel insurance is essential! If you haven’t already obtained travel insurance for your trip, travel protected against all odds with HeyMondo.