Where to Stay in Madrid | Best Neighborhoods and Hotels

Madrid, the Spanish capital, is a vibrant city that leaves many visitors beaming with joy. It comprises several neighborhoods, each boasting noticeable attractions.

This can make it difficult to choose where to stay in Madrid. Further, the decision becomes even harder when you consider the variety of things to do in Madrid.

Luckily, you don’t have to make that decision blindly. This guide is here to help you pick the right Madrid neighborhoods and the perfect hotel to suit your needs.

Best Neighborhoods to Stay in Madrid and Their Top Hotels

Here’s a list of the best places to stay in Madrid, Spain. You’ll also find hotels in the area for you, whether you have deep pockets or are exploring Madrid on a budget.


Barcelo Emperatriz

Best for: A luxury stay

Do you love Michelin-starred restaurants, boutique shops, world-class hotels, and chic fashion shops? Then Salamanca is the best area to stay in Madrid for you. The neighborhood is a luxurious area that exudes exclusivity on all corners, including many of its attractions.

This neighborhood is only a few metro stops from the central Madrid areas and has several excellent hotels.

One such hotel that provides excellent Madrid lodging in the neighborhood is Barceló Emperatriz. The hotel boasts elegant rooms that feature free Wi-Fi, flat-screen satellite TV, and private bathrooms equipped with premium toiletries.

Guests get iPads to use during their stay as well as portable Wi-Fi. Enjoy Spanish and international cuisine at the hotel’s restaurant before making those calories in the fitness center or swimming pool. Or just spend your time atop the rooftop terrace getting your daily fix of the sun.

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Hotel Urban

Best for: First-time visitors

Centro, located in the heart of the city, is the best place to stay in Madrid for first-time visitors. The area is close to many of the attractions that travelers make the journey to see, including archaic architecture.

Renowned attractions include Plaza Mayor, museums, and Royal Palace, which you can visit on a guided tour. You’ll also find varied dining options, including tapas, gourmet markets, and fast food joints around the district as well as fantastic accommodation.

The best accommodation in Centro is Hotel Urban, a boutique hotel with a modern aesthetic. Hotel Urban boasts a rooftop swimming pool, a cocktail bar, and a terrace open in the summer.

Rooms are soundproofed and feature incredible art as well as a flat-screen TV, DVD player, and free internet. Guests get to enjoy Michelin-starred cuisine at CEBO, the in-house restaurant, and gastro-pub delicacies at Glass-Mar.

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Claridge Madrid

Best for: Families

Retiro is the best location to stay in Madrid if you have kids joining you on the trip. The area is nestled close to the prestigious El Retiro Park, playgrounds, and lakes, providing ample space for kids to have fun.

It’s located just a few miles away from central Madrid, although it does have its fair share of attractions. This includes the city’s most important art museums, affectionately known as the “Golden Triangle.”

Claridge Madrid is the top hotel in the area. The rooms feature free Wi-Fi, flat-screen satellite TV to keep the kids entertained, a safe, minibar, and desk. Some even offer guests splendid views over Madrid.

Enjoy regional specialties at the cafe or restaurant, then visit the spacious free gym to burn calories. You can hire a car or bike from the hotel to explore the city at your own pace.

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Ibis Budget Madrid

Best for: Budget travelers

If you aren’t too keen on an expensive stay in one of the above neighborhoods of Madrid, then Lavapiés is here for you. This area, a part of Centro, is arguably the most ethnically diverse part of the city as it’s home to dozens of ethnic groups. The advantage is that Lavapiés is dotted with various dining options from different parts of the world.

The city also boasts trendy bars, hippie street art, and tons of locals as it’s not a renowned tourist destination.

Ibis Budget Madrid is the best place to stay during your visit to Lavapiés. The guest house rooms feature free toiletries in a private bathroom and a flat-screen TV. All rooms feature free Wi-Fi, while some come with a terrace.

Guests at the accommodation can enjoy a buffet breakfast to start their day. The metro is nearby, although you can get to attractions like Retiro Park and the Thyssen-Bornemisza Museum by walking for around 20 minutes. To keep your budget intact, try some of these free things to do in Madrid.

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Petit Palace Chueca

Best for: Nightlife

If you’re visiting the city to let loose and party the night away, then Chueca is the best neighborhood to stay in Madrid for you. The vibrant area has a festive atmosphere all year round, with clubs, trendy bars, pubs, and various restaurants littered all around.

The neighborhood also boasts various shops and art galleries showcasing local talents and is LGBTQ-friendly if that’s a concern. Thanks to being a part of Centro, several attractions are nearby.

Petit Palace Chueca, set in a 19th-century mansion, is the perfect place to stay in Chueca. There are restaurants, bars, and shops that guests can reach within a few minutes of walking. Lively Puerta del Sol and the renowned Gran Via and Thyssen-Bornemisza and Prado Museums are in close proximity.

The hotel features free Wi-Fi, with rooms having flat-screen TVs. You can get access to a free bicycle and iPad during your stay, subject to availability, of course.

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Final Thoughts on Where to Stay in Madrid, Spain

Madrid is a city filled with neighborhoods that offer something to do for all sorts of travelers. From families to party animals and lovers of luxury, you now know which neighborhood to stay in in Madrid.

These areas also have fine hotels that offer you a place to rest in between your city escapades. Many of them are conveniently located near the area’s best attractions.

Hopefully, this guide has made it easy for you to choose what neighborhood to stay in Madrid and the right hotel for you.


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