Fully updated June 2025. Originally published January 2025.
After four trips to Madrid, I’m sharing exactly where to stay for first-timers in Spain’s capital city. When deciding where to stay in Madrid, picking somewhere strategic to explore is super helpful.
Known for incredible art, its grand boulevards, and its reputable dining scene, Madrid has a lot to offer. With pockets of medieval architecture a reminder of the city’s past, much of the city is more modern than other historic corners of Spain like Seville or Granada.
Whether you plan to spend your time meandering the halls of art museums or people-watch as you sip coffee in one of the many terazzas, central Madrid has several neighborhoods perfect for travelers. I love having a chance to base myself in one to two places, which is why I’ll split my stay when I stay for a minimum of four nights.
From the flea market in La Latina to the green spaces in Retiro, or the upscale Salamanca, there is plenty to be explored while spending a few days in Madrid. Here is my selection of the best areas to stay in Madrid, and my top hotel recommendations so you can make the most of your time in the city.
Short on Time? Here Are My Top Picks for the Best Areas to Stay in Madrid:
For first-timers in Madrid, I recommend choosing where to stay based on your travel style, as the best areas to stay in Madrid are all quite central. Here are my top picks for where to stay:
- Sol or Los Austrias (staying at Gran Hotel Inglés), for the best area for first-timers
- Retiro (staying at Hotel Palacio), for the best area for families
- Barrio de las Letras or Paseo del Prado (staying at Casa de las Artes), for the best area for history and art lovers
- Salamanca (staying at Rosewood), for the best area for luxury
- La Latina (staying at Posada del Dragó ), for the best area for a local feel
- Malasaña (staying at 7 Islas), for the best area for culture and nightlife
Travel Tips
- Get Cell Data Before You Arrive — We use Holafly unlimited data eSIMs (5% off!) for all international travel.
- Book an Airport Transfer in Advance — We use Welcome Pickups for our private transfers to and from the airport.
- Rent a Car for Day Trips — We use Discover Cars for our rental cars in Europe, choose full coverage insurance, and opt for trusted companies like Alamo, Hertz, or Sixt.
Helpful Guides to Plan Your Trip
If you’re planning a trip to Spain, don’t miss my 10-day Spain itinerary, guides to Barcelona, Costa Brava, Mallorca, Seville, Granada, and recommendations for the most beautiful cities in Spain!
Where to Stay in Madrid For a First-Time Trip
Editor’s Note: Choose Where to Stay Based on Your Travel Style
For first-timers in Madrid, I recommend choosing where to stay based on your travel style. Are you a traveler who loves to be where the action is, surrounded by the city’s top attractions and at the heart of all things going on? Or would you prefer to be immersed in the best foodie hotspots in town?
The best areas to stay in Madrid are all quite central, with good public transport connections and within walking distance of restaurants, museums, key sightseeing destinations, and more. In this guide, I’ve outlined the top areas for travelers and the best hotels and apartments, whether you’re a family or planning a luxury vacation.
Neighborhood Map: 6 Best Areas to Stay in Madrid
I’ve mapped out the main 6 areas to stay at in Madrid, ordering my first to last choice based on area and what they offer.
- Sol or Los Austrias (PURPLE)
- Retiro (GREEN)
- Barrio de las Letras or Paseo del Prado (BLACK)
- Salamanca (ORANGE)
- La Latina (YELLOW)
- Malasaña (BLUE)
Where I’ve Stayed in Madrid
Over several trips to Madrid, I’ve stayed in a handful of areas. I’ve done a private rental in Los Austrias which proved convenient for exploring.
For hotels, I enjoyed my stay at the uber-luxury Santo Mauro in Salamanca. Tucked away from the city center, this is an ode to the Belle Époque era of Madrid.
On another trip for less than 48 hours in the city, I stayed at the Ibis Budget Madrid Centro Lavapies. The hotel is barebones, basic, and affordable but within walking distance of Puerta de Atocha Train Station.
Top Pick For First-Timer’s: Sol or Los Austrias
Sol is the center of Madrid where several of the city’s iconic landmarks are located, making it a great place for first-time visitors. You have the gourmet food market Mercado de San Miguel and the bustling atmosphere here. Sol is a high-energy spot that offers the convenience of good public transport connections, including several metro lines, popular sites, and access to Madrid’s nightlife.
Los Austrias was formerly the center of Madrid during the Habsburg dynasty era in the 16th and 17th centuries. Now, it’s a blend of tourist hotspots with touches of local life. Set among centuries-old architecture and the ancient streets of the medieval city, it’s close to numerous cultural and historic attractions, making it a great spot for those wanting to maximize their sightseeing experience.
Where to Stay in Sol and Los Austrias
Hotels
- Gran Hotel Inglés ($$$$), for the best art deco luxury
- The Madrid EDITION ($$$$), for the best modern luxury with a view
- Hotel Urban ($$$$), for the best chic, design-forward stay
- Vincci Capitol ($$$), for the best mid-range option on Gran Vía
Airbnbs
- 2 Bedroom Penthouse Duplex with Roof Terrace, for the best bright stay
- 1 Bedroom Stylish Apartment, for the best located stay
- 2 Bedroom Rustic Apartment, for the best charming stay
Top Pick For Families: Retiro
If you’re looking for somewhere a little quieter and with green spaces, Retiro is the best place for families. Retiro Park is a major drawcard for travelers looking to slow down and enjoy Madrid’s ‘green lung’, home to the Crystal Palace and the opportunity to ride boats on the lake.
Despite being a more residential area, Retiro features a collection of art museums, including the Prado Museum. Wander down the wide boulevard, Paseo del Prado, and admire the elegant architecture of the area. Retiro has good public transport connections and is located near several shopping hotspots as well.
Travel Tip: The trick to staying in the Retiro is being adjacent to the Retiro Park on the central side closer to the Prado Museum. And remember pre-book your tickets to the Prado Museum!
Where to Stay in Retiro
Hotels
- Hotel Palacio del Retiro ($$$$), for the best luxury views of Retiro Park
- Petit Palace Savoy Alfonso XII ($$$), for the best family-friendly stay near Retiro Park
- Only YOU Hotel Atocha ($$$), for the best eclectic, youthful vibe
- AC Hotel Recoletos ($$$), for the best stylish mid-range stay
Airbnbs
- 2 Bedroom Modern Apartment, for the best modern stay
- 2 Bedroom Penthouse with Rooftop, for the best spacious stay
- 2 Bedroom Chic Apartment, for the best designed stay
Top Pick For History and Art Lovers: Barrio de las Letras or Paseo del Prado
Whether it’s literature, art, or the theatre, Barrio de la Letras and Paseo del Prado are perfect areas for those in search of a cultural-inspired stay in Madrid. With a somewhat bohemian atmosphere, Barrio de las Letras is a literary and theatre district based around Plaza Santa Ana. This neighborhood is ideal for grabbing coffee and people-watching at cafes or browsing the shelves of centuries-old bookstores.
Home to the ‘Golden Triangle of Art’, this area is a mecca for art lovers. It’s where you’ll find three of Spain’s best art museums within walking distance: Museo del Prado, Museo Reina Sofía, and Museo Thyssen-Bornemisza. With a cosmopolitan feel and less nightlife than other areas, it’s great for those who want to blend local living with tourist spots of an artistic nature.
Where to Stay in Barrio de las Letras or Paseo del Prado
Hotels
- Catalonia Plaza Mayor ($$$), for the best cultural immersion
- Casa de las Artes, member of Meliá Collection ($$$), for the best artistic boutique hotel
- Catalonia Las Cortes ($$$), for the best historic charm
- Room Mate Alba ($$$), for the best trendy, vibrant stay
Airbnbs
- 1 Bedroom Apartment with Terrace and Plaza Views, for the best located stay
- 3 Bedroom Bright Flat, for the best spacious group stay
- 1 Bedroom Quiet Apartment, for the best clean stay
Top Pick For a Luxury Stay: Salamanca
An upscale area with elegant architecture, Salamanca is the best place for a luxury stay in Madrid. Leafy squares are accompanied by designer boutiques and plenty of the top residential properties in the city. Fine dining and high-end restaurants make for great dining options in the area, and those in search of cultural sights can visit the Archaeological Museum or National Library. It’s an ideal location if you want to avoid the tourist crowds too.
Where to Stay in Salamanca
Hotels
- Rosewood Villa Magna ($$$$), for the best mid-century glamour
- Hotel Wellington ($$$$), for the best classic luxury hotel
- Santo Mauro ($$$), for the best timeless elegance
- NH Collection Madrid Suecia ($$$), for the best rooftop views
Airbnbs
- 2 Bedroom Luxury Apartment, for the best luxury stay
- 3 Bedroom Elegant Apartment, for the best elevated group stay
- 4 Bedroom Two-Floor Apartment, for the best designed stay
Top Pick For Local Feel: La Latina
A favorite among foodies, La Latina is home to some of the best tapas bars in Madrid. If you want to experience the city more like a local and enjoy some of the best food in town, this is the place. Cava Baja, or ‘Tapas Street,’ is lined with restaurants and tapas hotspots.
But there’s more to La Latina than food. As one of the oldest neighborhoods in Madrid, the neoclassical and gothic architecture is a reminder of the city’s medieval past. On Sundays, shop the El Rasto Flea Market before enjoying an aperitif at a rooftop bar and dinner at one of the area’s trendy restaurants.
Where to Stay in La Latina
Hotels
- Posada del Dragón Boutique Hotel ($$), for the best budget-friendly boutique hotel
- Posada del León de Oro ($$), for the best historic boutique hotel
- The Hat Madrid ($$), for the best trendy budget stay
Airbnbs
- 2 Bedroom Penthouse with Private Terrace, for the best modern luxury stay
- 2 Bedroom Cozy Apartment, for the best stylish stay
- 2 Bedroom Penthouse with Terrace, for the best elevated stay
Top Pick For Culture and Nightlife: Malasaña
A favorite among culture seekers and night owls, Malasaña buzzes with a bohemian vibe and youthful energy. If you’re after trendy cafes, art galleries, and some of Madrid’s best nightlife, this is your spot. Plaza Dos de Mayo anchors the neighborhood with its lively, artistic spirit.
But there’s more to Malasaña than its modern flair. As one of Madrid’s oldest areas, its historic streets nod to the city’s past. By day, explore galleries or sip coffee at a chic cafe; by night, dive into the bars and clubs pulsing with music and energy.
Where to Stay in Malasaña
Hotels
- 7 Islas Hotel ($$$), for the best artistic boutique stay
- Urso Hotel & Spa ($$), for the best luxury boutique stay
- Sonder Malasaña ($$), for the best stylish apartments
Airbnbs
- 1 Bedroom Bright and Cheery Apartment, for the most beautiful stay
- 2 Bedroom Comfortable Apartment, for the best walkable stay
- 2 Bedroom Renovated Penthouse, for the best updated stay
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PS — Are You Booking a Trip Soon? Use My Booking Checklist!
These are the sites I use most to book my own trips. Using the links below is a great way to support Bon Traveler’s travel journalism at no extra cost to you. If you need help organizing your itinerary, get my free travel itinerary template here.
1. Book Your Accommodations
I use Booking.com for hotels and Airbnb for vacation rentals. They have the biggest inventory and consistently offer the best rates.
2. Book Your Rental Car
Self-driving is the best way to explore most destinations. I use Discover Cars for our rental cars, select full coverage insurance, and opt for a reputable company like Alamo, Hertz, or Sixt.
3. Book Your Tours & Experiences
I use Viator, Airbnb, and Get Your Guide to find the best tours and experiences. They are my favorite tour search engines. I always check all three as their inventory varies depending on the destination.
4. Book Your Private Transfers
For easy, reliable private transfers, I use Welcome Pickups. It’s my go-to for arranging a driver in advance — whether it’s an airport pickup, a hotel-to-hotel transfer, or a day trip. The experience is seamless, with English-speaking drivers and upfront pricing, so you can travel stress-free at every stage of your trip.
5. Get Cell Data for Your Trip
I use Holafly for international cell data. Their unlimited data eSIMs are easy to install, activate instantly on arrival, and let you skip local SIM cards and expensive roaming fees.
6. Don’t Forget Travel Insurance
I never leave the country without travel insurance. It provides comprehensive protection in case anything goes wrong (ie. illness, injury, theft, or cancellations).
My favorite companies that offer the best coverage and rates are:
- World Nomads (best for all-around)
- Safety Wing (best for frequent travelers)
Xx,
Jessica
