Where to stay in Madrid: best areas and neighborhoods

Filled with attractions and things to do, Madrid is a vibrant and very interesting city to visit. Being a large metropolis, you may find yourself a bit bewildered as to where to stay. Admittedly, Madrid enjoys an excellent public transportation network, and therefore, any area can potentially be good for finding hotels and lodging. One thing is for sure, as it is a very popular destination, wherever you choose to sleep, book well in advance to be sure of getting a place!

To help you in your selection, we have developed this guide on where to sleep in Madrid, gathering and highlighting the characteristics of each neighborhood, with a selection of various types of accommodations. Enjoy your choice and have a good trip!

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In a hurry? Here's our recommended accommodation

Useful tips: the best neighborhoods to stay in Madrid

Madrid is a city of diverse character, divided into 21 distinct districts, each offering its own unique culture, attractions, and atmosphere. For tourists, the primary area of interest is the "Distrito Centro" (Central District). This is where you'll find many of the city's most famous landmarks, including Puerta del Sol, Plaza Mayor, the Teatro Real (Royal Theatre), and the bustling Gran Vía. Not surprisingly, the Central District is generally considered to have the best neighborhoods for visitors to base themselves. However, don't overlook the districts immediately surrounding the center, such as Salamanca, Retiro, and Moncloa-Aravaca. These adjacent areas can also provide excellent accommodation options and a convenient base for exploring the city.
The following sections will delve into the specifics of the main neighborhoods within Madrid that are ideal for your stay.

Best accommodation: We have selected the best hotels, B&Bs and hostels in Madrid. Check out our recommendations and make your reservation on Booking

Not recommended areas: The worst areas of Madrid, albeit with a degree of insecurity that is not so low, are mainly the neighborhoods in the south: Orcasur, Orcasitas, Entrevías, San Diego, Palomeras Bajas, some areas of Villaverde, some areas of Carabanchel. The non recommended areas in the north are some streets of Tetúan.

Old Town (Central District), Best for First-Timers

Foto di Jorge Franganillo.

• Pros: Central location, iconic landmarks, great nightlife and shopping
• Cons: Crowded, can be noisy, tourist-heavy
• Main attractions: Puerta del Sol, Plaza Mayor, Gran Vía, Royal Palace
• Average prices: From €90,00 per night – find top stays on Booking

Recommended accommodation

The city center for excellence! Puerta del Sol, which once marked the boundaries of the city, is now the beating heart of Madrid life. The surrounding area is teeming with typical Spanish bars and numerous tourist attractions and squares, including Plaza Mayor and the lively Plaza de Santa Ana. To the north of Puerta del Sol is Gran Via, Madrid's main avenue, which is home to cinemas, theaters, restaurants, shopping malls and elegant boutiques, as well as a number of historic buildings now converted into elegant hotels, some of the most expensive in the city. There is no shortage of apartments and hostels in the side streets. A few steps from here, you'll find the Prado Museum and the Royal Palace!
This neighborhood is suitable for everyone and indeed it is one of the best choices if you are visiting Madrid for the first time! You can find all kinds of accommodations, from large hotels to quaint B&Bs, from room rentals to entire apartments.
You can discover the historic center by walking, but the area is served by three metro lines that connect the neighborhood to other parts of the city and the airport. The reference stops are Ópera, Gran Via and Estación de Sol.

Average prices in the neighborhood start from about €90,00 - compare the best accommodation on Booking

Jerònimos (Retiro District), Best for Green Spaces & Relaxation

• Pros: Close to Retiro Park, elegant atmosphere, peaceful yet central
• Cons: Fewer budget-friendly stays, not much nightlife
• Main attractions: El Retiro Park, Prado Museum, Crystal Palace
• Average prices: From €85,00 per night – find top stays on Booking

Recommended accommodation

Located just east of Madrid's city center, bordering Calle de Alcalá to the north, you'll find the tranquil neighborhood of Jerónimos, which is part of the Retiro district. This area offers a peaceful atmosphere while still being home to some of Madrid's most significant attractions. Notably, it's where you can explore the vast and beautiful Retiro Park, the city's largest and most famous green space, complete with stunning gardens and serene lakes. Furthermore, Jerónimos marks the westernmost point of the renowned "Paseo del Arte" (Art Walk), being the location of the world-famous Prado Museum.

If you're looking for a relaxing base, away from the immediate hustle and bustle of the very center, Jerónimos is an excellent choice. It's particularly well-suited for families and art enthusiasts. While slightly removed from the absolute center, accommodation here can be more budget-friendly, especially as you venture further into the neighborhood. Despite this slightly more peripheral location, it still boasts a strategic position for easily exploring the entire city. Keep in mind that prices in the immediate vicinity of the Paseo del Arte might still be on the higher side. Getting to the heart of Madrid is convenient thanks to the metro (with key stations at Alcalá and Retiro) and numerous bus lines. You can also enjoy a pleasant walk along the main streets to reach the central areas.

Average prices in the neighborhood start from about €85,00 - compare the best accommodation on Booking

Chueca (Central District), Best for LGBTQ+ & Trendy Vibes

Foto di tedeytan.

• Pros: Vibrant nightlife, LGBTQ+ friendly, great food and boutique shopping
• Cons: Can be noisy at night, pricier accommodations
• Main attractions: Mercado de San Antón, Plaza de Chueca, Calle de Hortaleza
• Average prices: From €80,00 per night – find top stays on Booking

Recommended accommodation

Chueca is Madrid's most fashionable neighborhood, a favorite of the capital's gay community. Dynamic, trendy and colorful, Chueca is also a reference point for nightlife, with many bars, clubs and restaurants. More than visiting specific attractions, here you can breathe and live a very special atmosphere. However, there is no shortage of historic buildings such as the Real Hospicio General de Pobres, currently home to the Museo de Historia de la Ciudad, Palacio de Longoria, one of the few modernist buildings in Madrid, and the palace of the Marquis of Matallana, which houses the Museum of Romanticism.
In terms of accommodation, the neighborhood is divided into two areas: the central part, near Calle Hortaleza and Plaza Vazquez de Mella, offers a wide selection of hostels, ideal especially for young people and groups of friends, while moving towards Calle Barquillo there are elegant and more expensive hotels.
The area is served by buses and two metro lines, but being within the perimeter of the historic center you can easily move around on foot. The reference stops are Tribunal, Pedro Zerolo and Chueca.

Average prices in the neighborhood start from about €80,00 - compare the best accommodation on Booking

Cortes / Barrio de Las Letras (Central District), Best for Culture & Literature Lovers

• Pros: Rich history, literary heritage, top museums, charming cafes
• Cons: Accommodations can be expensive, less nightlife compared to other areas
• Main attractions: Plaza Santa Ana, Casa de Lope de Vega, Thyssen-Bornemisza Museum
• Average prices: From €80,00 per night – find top stays on Booking

Recommended accommodation

Madrid's literary neighborhood, whose name refers to the fact that some of Spain's most important literary figures lived here, such as Cervantes, Lope de Vega and Tirso de Molina. It is located in the very center of the city, between the Sol-Gran Vía and Paseo del Arte areas, but it has the typical picturesque features and a timeless atmosphere, with its cafes and restaurants where intellectuals meet, flea markets and theaters.
It is the ideal area for those who want accommodation within walking distance of the most interesting attractions, without sacrificing a retro touch. It is recommended especially for families and those who want to stay in the center but without being in the hot spots of the nightlife. Here you will find a wide range of apartments, hostels and hotels.
The central location allows you to move easily in the city, reaching the center even on foot. The area is served by buses and two metro lines. The reference stops are Banco de España and Las Cortes.

Average prices in the neighborhood start from about €80,00 - compare the best accommodation on Booking

Recoletos (Salamanca District), Best for Luxury & Upscale Shopping

Foto di Enrique Dans from.

• Pros: High-end shopping, elegant streets, quiet and safe
• Cons: Expensive, not much nightlife
• Main attractions: Calle Serrano, El Corte Inglés, Plaza de Colón
• Average prices: From €80,00 per night – find top stays on Booking

Recommended accommodation

North of Retiro Park, this is one of Madrid's most exclusive neighborhoods. Recoletos is dominated in the center by Plaza de Colón and the main avenue Calle Serrano, where the elegant boutiques of the most famous international and local designers are located. Filled with beautiful buildings, Recoletos is also a residential area where prominent figures from the world of politics and entertainment live.
Michelin-starred restaurants and some of the most expensive luxury hotels are located in this area. It is the ideal neighborhood for tourists looking for glamour and luxury, or for those traveling on a high budget.
It is not too far from the center, but to reach certain attractions it will be necessary to use the subway. The neighborhood is served by the efficient public transport service and the reference stations are Nuñez De Balboa and Alonso Martinez for the metro and Marqués De Salamanca for the bus.

Average prices in the neighborhood start from about €80,00 - compare the best accommodation on Booking

Malasaña (Central District), Best for Bohemian & Hipster Vibes

• Pros: Alternative culture, vintage shops, great bars and cafes
• Cons: Can be noisy, less polished than other areas
• Main attractions: Plaza del Dos de Mayo, Conde Duque, Calle Espíritu Santo
• Average prices: From €75,00 per night – find top stays on Booking

Recommended accommodation

An alternative area of Madrid that is very similar to London's Camden Town. Malasaña is very linked to Movida, the cultural and social revolution that developed in Madrid during the 80s and that had its epicenter in this neighborhood. The name of the neighborhood derives from Manuela Malasaña, Madrilenian heroine of the May 2, 1808 revolt against French troops.
It forms an irregular square flanked by Gran Vía to the south, Calle Fuencarral to the east, Calle Carranza to the north and Calle San Bernardo to the west. Among the cultural attractions, you will find the Palacio de Liria, an eighteenth-century building that belonged to the House of Alba, and the Municipal Museum, now the History Museum. Given its characteristics, the neighborhood is ideal for young people looking for fun and nightlife, even better if they are fans of punk and rock music.
The neighborhood is quite central, but it is still well connected to the center by public transport; the reference station is Ventura Rodriguez for both buses and the metro.

Average prices in the neighborhood range from about €75,00 for low-cost accommodation to €450,00 for more expensive options - compare the best accommodation on Booking

La Latina (Central District), Best for Tapas & Local Vibes

Foto di Lalupa.

• Pros: Best tapas bars, multicultural vibe, lively street life
• Cons: Some areas feel less polished, busy nightlife
• Main attractions: Cava Baja (tapas street), San Francisco el Grande Basilica
• Average prices: From €65,00 per night – find top stays on Booking

Recommended accommodation

La Latina is the perfect neighborhood for those who want to experience Madrid like a true local. This historic district is famous for its winding medieval streets, lively squares, and most importantly, its tapas culture. Here, you’ll find Cava Baja, the ultimate tapas street, packed with traditional taverns serving jamón ibérico, croquetas, tortilla, and vermut. On Sundays, the neighborhood comes alive with El Rastro, Madrid’s largest and oldest flea market, where you can browse vintage finds, clothes, and artisanal crafts. Nearby, San Francisco el Grande is one of the city’s most stunning churches, while Parque de las Vistillas offers breathtaking sunset views. La Latina is the ideal place for food lovers, those seeking an authentic Madrid atmosphere, and anyone who enjoys a vibrant yet traditional Spanish experience.

Average prices in the neighborhood start from about €65,00 - compare the best accommodation on Booking

Lavapiés (Central District), Best for Multicultural & Alternative Scene

Foto di Jose.Madrid.

• Pros: Vibrant multicultural atmosphere, great international food
• Cons: Some areas can feel a bit rundown, nightlife can be noisy
• Main attractions: Plaza de Lavapiés, Reina Sofía Museum, Tabacalera Cultural Center, Mercado de San Fernando
• Average prices: From €70,00 per night – find top stays on Booking

Recommended accommodation

Lavapiés is Madrid’s most multicultural and alternative neighborhood, where Spanish, African, Arab, and Latin American influences blend seamlessly. Once a working-class district, it has transformed into the heart of Madrid’s underground art scene, filled with colorful murals, independent galleries, and alternative cultural spaces. Its food scene is just as diverse, ranging from traditional tapas bars to ethnic restaurants serving Indian, Moroccan, Latin American, and Asian cuisine. The central Plaza de Lavapiés is the beating heart of the neighborhood, a great place to grab a drink and soak in the lively atmosphere. The Reina Sofía Art Center, home to Picasso’s Guernica, is also within walking distance and a must-visit for art lovers. If you’re looking for an authentic, artistic, and off-the-beaten-path experience, Lavapiés is the perfect neighborhood for you.

Average prices in the neighborhood start from about €70,00 - compare the best accommodation on Booking

Argüelles, Casa de Campo, Ciudad Universitaria (Moncloa-Aravaca), Best for Families & Students

Foto di Triplecaña.

• Pros: Quiet, residential, close to university area, affordable stays
• Cons: Less touristy, fewer nightlife spots
• Main attractions: Temple of Debod, Parque del Oeste, Faro de Moncloa
• Average prices: From €75,00 per night – find top stays on Booking

Recommended accommodation

Arguelles, Casa de Campo, and Ciudad Universitaria are three neighboring districts that are part of the Moncloa-Aravaca district, northwest of Plaza España. In this area, you'll find the wonderful Parque del Oeste (West Park), which houses the Temple of Debod, and the Moncloa Lighthouse, offering one of the most fascinating panoramic views of all of Madrid.

The area of the Ciudad Universitaria de Madrid (University City of Madrid) is particularly ideal for young people, who can find many peers here. However, the Arguelles area, bordering the historic city center, is more suitable for families, who will be within walking distance of the main attractions and with the large park nearby!

The neighborhood is very well served by public transport to reach other areas of the city. Argüelles is the name of the main station for both the metro and the bus.

Average prices in the neighborhood start from about €75,00 - compare the best accommodation on Booking

Places to stay near Madrid

An entire week would not be enough to visit Madrid itself. In fact, it is a city of enormous dimensions and numerous attractions. In order to visit well and avoid wasting time in moving around, given its proportions, the best choice is definitely to sleep in the city. Moreover, Madrid is also the perfect starting point for various excursions in the surroundings, thanks to the railway network and the many buses. Staying in a small town in the surroundings would lengthen even more the expected time of travel.

• Toledo (73 km / 1 h): A stunning medieval city with a mix of Christian, Muslim, and Jewish heritage. - Compare best accommodation on Booking
• Segovia (90 km / 1 h 15 min): Home to the famous Roman aqueduct and fairy-tale Alcázar castle. - Compare best accommodation on Booking
• El Escorial (57 km / 50 min): Visit the majestic monastery-palace of Philip II, a UNESCO World Heritage Site. - Compare best accommodation on Booking
• Ávila (110 km / 1 h 30 min): A perfectly preserved medieval walled city, ideal for history lovers. - Compare best accommodation on Booking
• Aranjuez (50 km / 45 min): Known for its beautiful royal palace and gardens, perfect for a relaxing getaway. - Compare best accommodation on Booking

If you are in Madrid for business or as a one-day stopover to other destinations, consider sleeping near the airport. Find the best solutions and selected hotels on Booking.com

Madrid accommodation price map

Booking.com

Guide to the areas of Madrid

Madrid has 21 neighborhoods, each with its own personality, culture, atmosphere and attractions. The center is the area that surrounds Puerta del Sol and all around this area are the most suitable neighborhoods for first time visitors, especially for the comfort of being within walking distance of the main attractions and to move easily from one point to another, both on foot and by public transport.

Staying in the center, or close to it, will allow you to move very easily between the various neighborhoods, thanks to public transport, which includes buses and metro, the latter certainly ideal for moving around, with a station in every neighborhood.

On the other hand, If you are going to Madrid exclusively to watch a soccer match at the Santiago Bernabeu Stadium, the home of Real Madrid, you might consider staying in the surrounding area. However, this solution is not recommended if your trip focuses on sightseeing, as the stadium is far from the city center.

Cool Things to Do in Madrid

• Free Walking Tour: Explore Madrid’s Old Town, from Puerta del Sol to the Royal Palace, with a local guide. More info here.
• El Retiro Park Boat Ride: Rent a rowboat and enjoy the lake inside Madrid’s most famous park.
• Visit the Prado Museum: Home to masterpieces by Goya, Velázquez, and Rubens – an art lover’s paradise. Book tickets here.
• Flamenco Show in a Tablao: Experience the passion of Spanish Flamenco in an intimate venue. Reserve your seat here.
• Tapas Crawl in La Latina: Try traditional Spanish tapas like patatas bravas and jamón ibérico in Madrid’s best tapas streets.
• Bernabéu Stadium Tour: Visit Real Madrid’s legendary stadium and walk through its trophy room. Book your visit here.
• Sunset at Temple of Debod: One of Madrid’s best sunset spots with a stunning Egyptian temple backdrop.

Travel Tips for Madrid

• Public Transport: Madrid’s metro is one of the best in Europe. Get a 10-trip metro card for the best value.
• Best Time to Visit: Spring (April-June) and Fall (September-October) offer mild weather and fewer crowds.
• Local Currency: Spain uses the Euro (€). Cards are widely accepted, but cash is useful for small purchases.
• Museum Free Entry Days: Prado Museum is free Monday-Saturday (18:00-20:00) and Sunday (17:00-19:00). Reina Sofia and Thyssen also have free entry slots.
• Where to Eat on a Budget: Look for "Menú del Día" (Menu of the Day) at lunchtime – a full meal for around €10-15.
• Siesta Hours: Many shops close in the afternoon (14:00-17:00), so plan accordingly.

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