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Where to Stay in Madrid and areas you should avoid + MAP
Where to Stay in Madrid and areas you should avoid + MAP
Read this guide for at least 5 minutes so you don’t accidentally book a “nice-looking hotel” in a neighborhood that feels unsafe or simply doesn’t match the trip you want.
Most “where to stay in Madrid” guides are written by tourists.
This one isn’t.
I lived in Madrid for 20 years. I’m not going to pretend I’ve stayed in every hotel, but I will tell you exactly which areas are worth it, which ones aren’t, and the local secrets that make your trip more interesting, safer, and truly unique. Especially if it’s your first time in Madrid.
If you still have questions, drop them in the comments at the end, I always help my readers personally.
Tabla de contenidos
Map: Where to Stay in Madrid (Simplified)
Best Neighborhoods to Stay in Madrid (Avoid Lavapiés)
Quick Summary for Neighborhoods
Couples (quiet trip): Barrio de las Letras, Chueca, Los Austrias
Families: El Retiro (the top choice)
Solo travelers & friends: La Latina (tapas), Malasaña (nightlife), Sol (energy & international vibe)
Shopping & luxurious: Barrio de Salamanca or north side of El Retiro
Quick Summary for Hotels
Best value for money: Hotel Mediodía, around $55 per night)
Most imperial option: Pestana Plaza Mayor, around $350 per night
Most central and top-notch: CR7 Pestana Gran Vía, around $400 per night
1. Gran Vía: Best if You Want Quality + Walk Everywhere
Perfect for: First-time visitors, shoppers, musical lovers, and anyone wanting to be close to every major attraction.
If you want to walk to the city’s main monuments, museums, restaurants and enjoy an elegant, upscale vibe, Gran Vía is the #1 area (yes, even better than Sol).
This is where you’ll find Spain’s biggest Broadway-style musicals, brands like Zara and Primark, and luxury shops like Rolex. The atmosphere is fast-paced but clean, stylish and exciting.
Gran Vía is busy, but in a good way. And I personally love that vibe.
Here's a list of the best hotels in Gran Via already filtered, so you don't get the bad ones.
Pros and Cons of Staying in Gran Via
✅ Best transportation connections in the entire city
✅ Walkable to practically everything
✅ Endless restaurants, musicals, cafés, and shops
✅ Clean, elegant and safe very safe
❌ Loud and crowded 24/7
❌ Some connecting streets toward Sol feel overwhelming
❌ Higher prices for hotels, restaurants, and shopping
Top 3 Hotels in Gran Vía
(Curated by reviewing hundreds of ratings + knowing the real location as a local)
Luxury: Pestana CR7 Gran Vía (~$300/night)
Amazing soundproofing despite being in the city’s busiest street.
Best Value:Apartamentos Madrid (~$200/night)
A perfect middle ground: kitchen, sofa bed, great location, fair price.
Budget: Gran Via Experiences or Casa Alfaro (~$70/night)
Safe, central, simple. Avoid the $40 “too good to be true” listings in sketchy areas.
2. Sol: El centro de todo aunque un ambiente más caótico y popular
Sol is Madrid’s Kilómetro Cero, the exact center of the country. Staying here means being surrounded by shops, bars, restaurants and crowds at every hour of the day.
It’s practical, extremely central and energetic, but not necessarily the most charming place to sleep. Think of it like Times Square in New York or Piccadilly Circus in London, a must visit, but not always the best place to stay if you want peace or elegance.
I recommend Sol mainly for solo travelers, groups of friends or younger couples who want nightlife and atmosphere.
For sleeping, I personally prefer Gran Vía or Chueca since they feel more “polished”.
Pros and Cons of Staying in Sol
✅ Walk everywhere
✅ Restaurants and shops for every budget
✅ Lively atmosphere 24 hours a day
✅ Clean, elegant and safe very safe
❌ Constant crowds (24/7!!!)
❌Less charming than other areas
❌ Budget hotels are usually noisier and less comfortable
Top Hotels in Sol
(Curated by reviewing hundreds of ratings + knowing the real location as a local)
Perfect for travelers who want to stay right in the center of Sol while enjoying one of the most luxurious hotels in Madrid.
My opinion: The location and level of quality justify the higher price. You’ll be a five minute walk from the Spanish Congress building, Banco de España, El Retiro, Puerta del Sol and Puerta de Alcalá. It also has a 9.1 out of 10 rating and even though I haven’t stayed here myself, I can assure you the area is one of the safest in the whole city.
Perfect for travelers who want a flawless location with a kitchen, sofa bed and a proper bedroom without overpaying.
My opinion: This is my winner if you’re looking for value for money while staying in the heart of everything.
Great for backpackers, solo travelers or anyone who only needs a bed to sleep in and wants to be right in the middle of the action.
My opinion: If your goal is to spend as little as possible and stay somewhere with a young atmosphere where you can meet other travelers, go out at night and join the hostel activities, Barbieri is a solid option.
3. Malasaña, an Alternative Neighborhood Full of Local Nightlife
Perfect for young travelers, whether young in age or spirit, lovers of indie music, fans of vintage shops and anyone who wants a bohemian atmosphere just a short walk from Madrid’s main tourist areas.
This neighborhood became the heart of Madrid’s cultural explosion in the 1980s, a period known in Spain as La Movida. If you’ve never heard of it, think of it as a mix between New York’s punk era and Berlin’s underground nightlife, but with a uniquely Spanish personality. It was a wild, creative rebellion that transformed Madrid into a city of music, art, freedom and counterculture.
Even today, Malasaña keeps that same “anti mainstream” DNA. You still feel those roots in its vintage shops, the tiny indie cafés, the bars that look like they haven’t changed in 40 years and the overall energy of the neighborhood.
It’s one of the areas where you can really feel how locals live and where Madrid’s modern identity was shaped. And do not worry, despite the underground nightlife, Malasaña is very safe at night.
Here's a list of the best hotels in Malasaña already filtered, so you don't get the bad ones.
Pros and Cons of Staying in Malasaña
✅ Youthful and bohemian atmosphere
✅ Lively every day of the week
✅ Very well connected
✅ It's a safe area despite having an “underground” look.
❌ Noisy at night and very noisy from Thursday to Sunday
❌ The aesthetics can feel a bit “dirty or street like”
The Best Places to Stay in Malasaña
One thing you’ll notice when looking for accommodation in Malasaña is that the hotel supply is very limited. There’s a clear reason for this: it’s a protected neighborhood with narrow streets and intense nightlife, which makes it not an ideal place for large hotel chains.
Accommodation here is mostly tourist apartments. These are the ones I consider the best:
Roisa Centro, around $150 per night.
A serviced apartment with a good location, good soundproofing and a living room with a sofa bed and kitchen.
Gran Central Suites, around $150 per night.
Just like the previous one, a vacation apartment with very good facilities and ratings. It is not the typical “cheap looking” apartment. Very well located, although the soundproofing from the street is not great.
4. Chueca, Diversity, Safety and LGBTQ+
Perfect for: LGBTQ+ travelers, food enthusiasts, and anyone seeking a chic, inclusive, and safe area with a vibrant atmosphere at all hours.
I have to confess that I have a special affection for this area. During my university years I developed a nightlife app and I had to walk all over Chueca, talking to dozens of bar owners. Although some party bars can be a bit explicit on their screens…
The streets are quiet despite being full of nightlife and with a very high feeling of safety. There are many bars and restaurants, although I must say that most of them have higher prices.
We have eaten several times at San Antón Market and it is a must stop for eating or having tapas. Highly recommended even though the price per person is around $25 to $30 (food + drink) or around $10 for a sweet snack and coffee. But honestly, in this area of Madrid those prices are normal.
Here’s a list of the best hotels in Chueca already filtered, so you don’t get the bad ones.
Here's a listof the best hotels in Chueca already filtered, so you don’t get the bad ones.
Pros and Cons of Staying in Chueca
✅ The most tolerant neighborhood in Spain, very calm and safe
✅ Lively from Monday to Sunday
✅ Very well connected, 15 minutes on foot from Sol
❌ Bar prices tend to be higher than in Malasaña
❌Some adult venues are very explicit
❌ During Pride, if you want to rest, it will be impossible because there is a 24/7 party
The Best Places to Stay in CHUECA
Chueca has some of the most stylish boutique hotels in the city, many with rooftops and pools that are a real urban oasis. Many of the guests are LGBTQ+ clients, more open and extroverted, in case you want to make new friends or meet someone.
One of the most iconic hotels in Chueca due to its chic aesthetics, but especially because of its owner Kike Sarasola, a Spanish genius in hospitality (and by the way, married to a man, fun fact haha).
I call this one the “good, nice and well priced” option in Chueca. Well-equipped to enjoy the neighborhood without missing anything and paying a fair price.
If you want the most luxurious hotel in Chueca with an almost perfect rating and classic decoration, you will love this hotel.
Los Austrias, Imperial Madrid
Perfect for: History lovers, couples looking for a romantic setting, families, and anyone who dreams of staying in the most monumental and peaceful area of Madrid.
The neighborhood is dominated by two main areas. On one side, the Royal Palace and the Almudena Cathedral. On the other hand, the impressive Plaza Mayor (not to be confused with Plaza de España), with its 16th century arcades and reddish façades, the Royal Theatre, and a bit further north, Plaza de España and the Temple of Debod (an ancient Egyptian temple currently located in the center of Madrid)
Walking through this area is, for me, the most touristy thing you can do in Madrid.
Ah…. by the way… DO NOT LEAVE WITHOUT EATING A SQUID SANDWICH, haha.
Recommendation: In Plaza Mayor, at most have a coffee or a beer. If you want to eat, it’s better to leave the square. A good and affordable place nearby is Its Pinsa, or if you don’t mind spending a bit more, Pirrimital. And if you really want the experience of eating in Plaza Mayor, Restaurante Arrabal is not bad at all.
Here’s a list of the best hotels in Los Austrias
Here's a list of the best hotels in Los Austrias already filtered, so you don’t get the bad ones.
Pros and Cons of Los Austrias
✅ The most beautiful and monumental area of Madrid
✅ Very very safe
✅ No chaos or crowds like in Sol or Gran Vía, even though it’s full of tourists
❌ Bars and hotels have the highest prices in the city
❌ At night during weekdays, except for some cocktail bars or hotel rooftops, there isn’t much going on
Many hotels are located inside restored historic buildings, offering a unique experience that combines old charm with modern luxury. If you have the budget, great. If not, prices can be very high.
Hotel Riu Plaza España, around $350 per night
Located in the iconic “Edificio España“, right in Plaza de España, this hotel is an attraction itself. Its main highlight is the spectacular rooftop with a glass walkway, offering one of the best views of Madrid with free access for guests. It’s also close to Gran Vía, Sol and the Royal Palace. Location is a 10.
Pestana Plaza Mayor Madrid, around $400 per night
A true hotel gem, something reflected in the price. It is located right in Plaza Mayor, inside a historic building (the old Casa de la Carnicería). It has a rooftop pool with incredible views. Every time I walked through Plaza Mayor, I wondered whether those big windows belonged to a palace… until I discovered it was this hotel, haha. If I had to stay in a hotel and had the budget, I think this would be my choice.
Palacio PL Conde de Miranda, around $150 per night
This is the place I always recommend when someone asks me where to stay in Madrid. Very close to Plaza Mayor, with a 9.4 out of 10 rating, and ideal for couples and families.
Literary Quarter, Literature and Culture
Perfect for: Couples (especially older ones), lovers of culture and literature who want to immerse themselves in the most intellectual part of Madrid. It’s the perfect neighborhood if your plan is to go from museum to museum without being far from Sol and Gran Vía.
It’s called “Literary Quarter” for a very powerful reason: the greatest geniuses of Spanish literature lived on these streets. We’re talking about legends like Lope de Vega, Cervantes, Quevedo and Góngora. In fact, you can visit the Lope de Vega House Museum to see how he lived in his time.
From here, you’re a five minute walk from the famous “Art Triangle”: the Prado Museum, the Thyssen Bornemisza and the Reina Sofía Museum (take a look at its restaurant and coffee here).
Walking through the neighborhood is something I 100% recommend. Most of its streets are pedestrian only and, as a nod to Hollywood style, you’ll find golden cobblestones engraved with fragments of the works of the writers who give the neighborhood its name.
In general, the atmosphere is calm and relaxed, full of excellent tapas bars, beautifully decorated cafés and high quality restaurants where you eat incredibly well, like Inclán Brutal Bar (a tribute to the famous writer Valle Inclán).
Pros and Cons of Barrio de las Letras
✅ Central location without the noise
✅ Very safe
✅ Cultural atmosphere
❌ Accommodation is expensive and there’s not much of it
❌ At night you can have a drink, but not for too long, because it’s not a nightlife area
The hotel options here are very varied, so I’ll give you three for different budgets:
Vincci Soho, from $350 per night
If you’re looking for a luxury experience, this is your option. A modern, elegant design hotel famous for its beautiful and quiet interior patio with tall trees providing shade. Perfect location.
Axel Hotel Madrid, from $300 per night
An adults only hotel with a chic atmosphere and a rooftop with a pool and sky bar. I recommend it to couples who want a very good hotel.
Hostal Astoria, from $120 per night
The budget option for those looking for value for money and location. Don’t be fooled by the word “hostal”, it offers impeccable and comfortable private rooms in the heart of the neighborhood. Otherwise, it wouldn’t have almost a 9 out of 10 rating.
7. El Retiro: A Central and Quiet Area
First I’ll explain the neighborhood, then I’ll recommend hotels and places to stay.
The west side of the Retiro neighborhood is only a 15 minute walk from the city center (kilómetro 0), but far enough to escape the noise. It’s a quiet and charming area, well connected, with Atocha train station right next to it and the Prado Museum, Botanical Garden, Puerta del Sol, Banco de España, the Thyssen Museum and Cibeles just a few minutes away on foot.
The east side of the Retiro district is much farther from the center, so I don’t recommend it if you want to walk to the main monuments, theaters and attractions in Madrid.
Although there are many monuments in this area, the main highlight is El Retiro Park, one of the most beautiful and largest parks in Europe. I recommend spending at least one morning here, renting a boat and having a coffee at one of its outdoor terraces.
Whether you’re traveling as a family or as a couple, the west side of Retiro is a great place to stay.
In this area, I recommend having a coffee at the Mandarin Oriental Ritz hotel because the lounges are stunning. It’s around $8 for a coffee… but the experience is worth it.
I also recommend visiting the Reina Sofía Museum and, when you finish, grabbing something to drink at its cafeteria.
Recommended Hotels in El Retiro
In this area, exclusivity is reflected in the prices, but I’ve looked for options for different budgets that still offer excellent quality and a privileged location in the western part of Retiro.
👑 Luxury Option: Hotel Mandarin Oriental Ritz, around $1,000 per night.
Perfect for: A once in a lifetime occasion or for travelers who always want the best no matter the price.
My opinion: This is, without a doubt, the most luxurious hotel in Madrid. Its location, right in front of the Prado Museum, is unbeatable. My advice: even if you don’t stay here, treat yourself to a coffee (around $10) in its beautiful lounges. The experience of being in such a historic and elegant place is worth it.
⭐ My Pick (Value for Money): Hotel ITC Mora, around $120 per night.
Perfect for: Couples or families who want a quiet, high quality, central area without the high prices usually found in the Retiro area.
My opinion: This hotel is a safe bet. Its main advantage is that it’s right on Paseo del Prado but on the quieter side, guaranteeing a good night’s sleep with no noise. You’re literally steps away from the Botanical Garden and the Reina Sofía (and its lovely café with a DJ). Whenever someone asks me about a hotel in Retiro, this is usually my recommendation.
💎 Boutique Option: Only YOU Atocha, around $200 per night.
Perfect for: Travelers who want a hotel with a lot of style, atmosphere and a strategic location.
My opinion: This is one of the trendiest hotels in Madrid, and for good reason. It’s right in front of Atocha train station, which makes it incredibly convenient if you’re arriving by train or planning a day trip to Toledo or Segovia.
Unlike other hotels in the area, which are more classic, Only YOU has a New York vibe and a rooftop terrace that is a big plus. Even though I haven’t stayed here, the reviews are excellent (9.1 out of 10) and the location is a perfect 10.
Smart Choice: Hotel Mediodía, around $60 per night. Perfect location near Atocha and El Retiro, and in my opinion, the best value for money in Madrid.
8. Barrio de Salamanca, Chic and Exclusive
First I’ll explain the neighborhood, then I’ll recommend hotels and places to stay.
Recommended Hotels in Barrio de Salamanca
The most exclusive, quiet and chic neighborhood in Madrid, and also the most expensive.
From luxury boutiques (this is where the famous “Golden Mile” is, with exclusive stores like Jimmy Choo, Guess, Louis Vuitton, Loewe, Cartier, Moncler…) to Michelin starred restaurants and Pilates studios on every corner.
It’s an area that mixes Madrid’s high end residential atmosphere with hotels designed for travelers who want exclusivity.
Both families and couples will feel very comfortable and safe in this neighborhood.
If you enjoy walking through exclusive places, I recommend strolling along the Serrano Street since you’ll find stores like Gucci, Rolex, Loewe…
And for food, I 100% recommend the restaurant Bel Mondo. They have every price range and the quality is fantastic.
And for a nice brunch in a beautiful place, Norah Coffee is a great option.
Here the word “cheap” does not exist. The focus is on quality and exclusivity. I’ve selected three options that represent the best of the neighborhood at different price ranges (always within a high standard).
👑 Luxury Option: Hotel Hospes Puerta de Alcalá, around $350 per night.
Perfect for: Travelers seeking a classic luxury experience with an unbeatable location.
Local’s view: This hotel is wonderful. It’s right in front of Puerta de Alcalá and El Retiro Park, giving you the best of both worlds: Salamanca’s exclusivity and Madrid’s green heart just steps away. Its spa is one of the most beautiful in the city and perfect for relaxing after a day of shopping.
⭐ My Pick (Value for Money): Hotel VP Madroño, around $150 per night.
Perfect for: Travelers who want the experience, tranquility and safety of Barrio de Salamanca at a reasonable price.
Local’s view: For me, this is the smart choice in Salamanca. Its advantage is that it’s located in a more residential and quiet part of the neighborhood, but just a 10 minute walk from the luxury shopping area. It allows you to enjoy the neighborhood like a local while escaping the busiest tourist streets. At this price, it’s a fantastic option.
💎 Boutique with Terrace: Hotel H10 Puerta de Alcalá, around $220 per night.
Perfect for: Couples looking for a hotel with style and a nice rooftop bar to have a drink.
My opinion: If your budget is slightly higher and you value a good rooftop (something not very common in such a classic neighborhood), this is the hotel for you. It combines Salamanca’s elegance with a more modern, social vibe on its rooftop with spectacular views. It’s the perfect balance.
9. La Latina, Truly Madrilenian Atmosphere
Finally, the neighborhood that best preserves the essence, tradition and authenticity of Madrid.
It’s located very close to the center, just steps from Almudena Cathedral and the Royal Palace.
Here you’ll find traditional restaurants that deserve a Michelin star and dozens of bars where you can enjoy real Spanish tapas and cocktails. It doesn’t matter whether you go out at 11 in the morning or 11 at night. You will always find atmosphere and generally a good feeling of safety.
It has a youthful vibe, somewhat noisy but completely safe even at night. Still, I don’t recommend it for families visiting Madrid because there are other areas much better suited for kids.
Local recommendation:
La Latina is the sound of clinking glasses and the smell of stew on Sunday afternoons. It’s a neighborhood made for getting lost in its narrow streets, discovering small artisan shops and ending the evening on a terrace watching life go by.
On Sunday mornings the neighborhood transforms with El Rastro, the most famous street market in Madrid. It’s a neighborhood with soul, a bit noisy and full of life, perfect for anyone looking for a 100% Madrilenian experience.
Recommended Hotels in La Latina
Staying here is an experience in itself. My recommendations focus on small boutique hotels and places that let you live the neighborhood like a local. Prices tend to be high since the few hotels that exist are top quality.
⭐ My Pick (Historic Boutique): Posada del León de Oro, around $230 per night.
Perfect for: Couples looking for a romantic, historic experience in the heart of La Latina.
My opinion: This hotel is a gem. You sleep inside a 19th century building, right on Cava Baja, the most famous tapas street in Madrid. You walk out the door and you’re literally in the epicenter of La Latina’s atmosphere. It’s the best option to fully immerse yourself in the neighborhood.
Quality is excellent and the location is unbeatable. Even though I haven’t stayed here and can’t tell you what it’s like inside, the reviews are almost perfect (8.8 out of 10).
💰 Apartment Option: Apartamentos Madrid Cava, around $190 per night.
Perfect for: Travelers who want more space, a small kitchen and the experience of El Rastro.
Local’s view: If you want to feel like a resident, an apartment is a great choice. These apartments have a fantastic location to explore El Rastro on Sunday morning without crowds. It gives you the freedom to buy fresh products at Mercado de la Cebada and enjoy a relaxed breakfast before exploring the city.
💰 Budget Option (Hostel with Atmosphere): Ok Hostel Madrid, around $40 per night.
Perfect for: Solo travelers, backpackers and young people who want to meet others.
My opinion: This is probably the most famous and fun hostel in the area. I’ve walked past it hundreds of times and the entrance is always full of young people, with travelers from all over (especially Mexico and Northern Europe). Its location is perfect, right between La Latina and Tirso de Molina. If you’re traveling alone or with friends and want a social, safe and clean place, this is your best bet.
10. Other Areas Near Madrid That Are Cheaper
In this last section I’ll recommend other areas near the center of Madrid that are well connected and much cheaper.
Some have tourist attractions, like Alcalá de Henares, and others are simply close to Madrid without offering much more.
1. Alcalá de Henares: Cervantes, Cisneros and the Cathedral
If you’re looking for cheap accommodation near Madrid but you like medieval history and want to visit a UNESCO World Heritage city, Alcalá de Henares is going to fascinate you.
The Miguel de Cervantes House Museum, the Catedral de los Santos Niños and the University are some of the attractions in this city that, I assure you, you’re going to love.
If you combine that with a tapas route (tapas here are very inexpensive) and medieval streets, your Madrid trip becomes twice as good.
In Alcalá it’s easy to choose where to stay. The center. There’s no debate. You’ll be a 15 minute walk from the train station and just a few minutes from the main attractions of the city. Simple.
Hotels in Alcalá de Henares
Frequently Asked Questions
1. Is Madrid safe?
Yes. The center of Madrid is a very safe area. However, avoid the Lavapiés neighborhood.
2. What is the best time to visit Madrid?
The best time to visit Madrid is Christmas or spring.
In summer it gets extremely hot and there is barely any breeze. In winter it’s cold, but with a coat you’ll be fine.
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