If it is your first time in Madrid, choosing where to stay can be a complex task: the center of Madrid, although not huge, is quite extensive, and there is a lot of information and advice out there that is not always easy to understand.Â
Here is our first tip: there is no “best area” to stay in Madrid. There are several areas that can be very good, it all depends on what you are looking for and also on your budget.
And here is the second tip: although the center of Madrid is relatively large, if you choose an address close to a metro station, it will be very difficult to go wrong.
Stay in Madrid within this area
Let’s go with the third tip. If possible, look for accommodation within an area delimited by an imaginary line that starts at Parque del Oeste, continues along Alberto Aguilera, Sagasta and Serrano streets and at PrĂncipe de Vergara turns south following the east side of Parque del Retiro. The line turns west, passing through Atocha station and the rondas de Toledo and Segovia. It passes along the west side of the Royal Palace and closes the rectangle at Paseo de la Florida.
And why do we want you to stay in this area? We are now placing on the screen the location of the main tourist attractions in Madrid, which will help you understand the reason. By staying in these areas, you will be close to everything.
Only a very small number of attractions, such as the Santiago Bernabeu stadium, which is in the north of Madrid, or part of Madrid Rio, which is in the south, are left out of the map.
If you select accommodation in this area, close to a metro station, success is guaranteed!
Let’s move a little closer to the center to start talking about very central areas that we think are great to look for accommodation, each one with its own personality.

MADRID DE LOS AUSTRIAS AND SOL
The area of Madrid de los Austrias is the heart of the oldest part of the city, where Madrid was founded. The Austrias dynasty (the name in Spanish for the Habsburgs) created in Madrid what is now known as the historic center of the city, with buildings that evoke memories of Spain’s imperial past, the largest known empire on the planet. As a reference to this past, this part of Madrid is known as Madrid de los Austrias.
Madrid de los Austrias and the neighboring Puerta del Sol area are two of the favorite addresses for those who want to be close to everything, in an area full of pedestrian streets and where almost everything can be done on foot.
In favor of staying in Madrid de los Austrias and Sol:Â
- you’re in the heart of Madrid
- it is close to many places of interest
- there is a wide range of hotels of all types, from pensions to luxury hotels
- the transport connections are excellent
On the downside:
- there are many tourists, day and night
- especially in and around the Puerta del Sol, it can get very crowded
- Puerta del Sol is often the scene of protests.
The area is full of metro stations and a major train station at Puerta del Sol. It is also home to some of the city’s most important tourist attractions.
For each region, we will share several accommodation suggestions, which you will see on the screen now, in different price ranges, budget, mid-range and luxury. We’ll put links to more information about those hotels in the first comment below the video.
Madrid de los Austrias and Sol: recommendations
- BUDGET | Sungate Hostel
- BUDGET | Hostal Aresol
- BUDGET | Hostal Oriente
- MID-RANGE | B&B Hotel Madrid Plaza Mayor
- MID-RANGE | Petit Palace Tres Cruces
- MID-RANGE | Eurostars Casa de la LĂrica
- MID-RANGE | Hotel Liabeny
- LUXURYÂ | Thompson Madrid by Hyatt
- LUXURYÂ | Four Seasons Hotel Madrid
BARRIO DE LAS LETRAS
Next to Sol, Barrio de las Letras, also known as Huertas, is our second choice. It is a small area in the center of Madrid famous for having hosted at some point in their lives famous Spanish writers such as Cervantes, Quevedo, GĂłngora or Lope de Vega.
The main attraction of the neighborhood lies in its curious and diversified offer: museums, antique shops, traditional and modern fashion stores, taverns and bars are mixed with gambling, alternative stores, laundries and other veteran businesses. At night, some areas of the region trade historic flavor for partying.
There are few outstanding attractions in the neighborhood, but its strategic location is highly valued by those who choose it.
In favor of staying in the area of Las Letras:Â
- it is a part of Madrid that looks and feels like a real neighborhood, without tall buildings, with narrow, tree-lined streets.
- it is close to many places of interest
- there are many bars and restaurants
- it is lively day and night
On the downside:
- the absence of public transport in its narrow streets
- the hustle and bustle around the squares and bars can be a nuisance for those looking for tranquility.
There are only metro stations in the limits of the neighborhood. Atocha station is very close to its southern end.
Las Letras: recommendations
- BUDGET | Hostal Alexis
- BUDGET | Hostal Cervelo
- BUDGET | Hostal Persal
- MID-RANGE | JC Rooms Santa Ana
- MID-RANGE | Room Mate Alba
- MID-RANGE | Ibis Styles Madrid Prado
- LUXURYÂ | ME Madrid Reina Victoria
- LUXURYÂ | Hotel Urban
- LUXURY | Gran Hotel Inglés
- LUXURYÂ | The Westin Palace

Atocha
The area surrounding the Atocha station is not a neighborhood as such, but a group of neighborhoods near the station, but has plenty of accommodation options due to the convenience of this location for those who plan to arrive or leave Madrid by train, or make several day trips from Madrid.
In favor of staying in the Atocha area:Â
- the convenience of being close to the train station, with connections to the airport and many other points in Spain.
- there are many hotels
- there are good connections to get around Madrid, including the free bus 001, which is very handy for sightseeing in Madrid
On the downside:
- it is a very busy area, there is a lot of traffic, both vehicles and travelers coming and going from the station.
Atocha: recommendations
- BUDGET | Hostel Siesta & Go
- BUDGET | Hostal Barrera
- BUDGET | Latroupe Prado Hostel
- MID-RANGE | Sleep’n Atocha
- MID-RANGE | UMA Suites Atocha
- MID-RANGE | Hotel MediodĂa
- MID-RANGE | Hotel Agumar
- LUXURYÂ | NH Madrid Nacional
- LUXURYÂ | Only YOU Hotel Atocha
- LUXURYÂ | Atocha Hotel Madrid, Tapestry Collection by Hilton
Paseo del Arte
The area known as Paseo del Arte includes some of the most famous museums in Madrid, in a very posh area between the Paseo del Prado and the Retiro Park, which reaches the National Archaeological Museum, in the Salamanca neighborhood. It is a paradise for those interested in art and culture. It is a neighborhood with wide, elegant streets and many historic buildings.
In favor of staying in the Paseo del Arte area:Â
- the proximity to the best museums in Madrid
- it is an elegant area
On the downside:
- in some parts of the area the metro can be a bit far away, but with the bus you can easily reach everywhere
- the prices of the hotels are higher, with no budget options.
Paseo del Arte: recommendations
- MID-RANGE | Petit Palace Lealtad Plaza
- MID-RANGE | Petit Palace Savoy Alfonso XII
- MID-RANGE | AC Hotel Recoletos by MarriottÂ
- MID-RANGE | ICON Wipton
- MID-RANGE | H10 Puerta de Alcalá
- LUXURY | Hospes Puerta de Alcalá
- LUXURYÂ | NH Collection Madrid Paseo del Prado
- LUXURYÂ | Hotel Palacio del Retiro, Autograph Collection
- LUXURY | Wellington Hotel & Spa
- LUXURYÂ | Mandarin Oriental-Ritz
Gran VĂa and Plaza de España
The long Gran VĂa street and the Plaza de España at one end are a favorite address for many people visiting Madrid. Gran Via is not a neighborhood as such, but a fairly well-defined address.
The avenue is famous for its stores and also for being the street that never sleeps. Along it, there are countless stores, hotels and theaters. The tourist industry refers to part of Gran VĂa as the “Spanish Broadway”.
The avenue is considered a showcase of 20th century architectural styles, such as Viennese Secession, Plateresque, Neo-Mudejar and Art Deco. It is frequented by many tourists out shopping.
The Plaza de España, at the end of the Gran VĂa, is a large open space surrounding many of Madrid’s sights. It offers a respite from the constant bustle of the Gran Via itself.
In favor of staying in the region of Gran Via and Plaza de España:
- you are close to many places of interest
- there is a wide choice of hotels of all types, from hostels to luxury hotels
- transport connections are excellent, including the free bus line 001, which runs along the avenue from end to end
- it is a shopping paradise (for those interested) and also a leisure hub, with numerous cinemas and theaters
On the downside:
- there are many tourists, day and night
- the traffic on the avenue is unbearable
- except for the Plaza de España, you will hardly see a tree, everything is concrete.
Gran VĂa and Plaza de España: recommendations
- BUDGET | room00 Gran Via Hostel
- BUDGET | Hostal Main Street Madrid
- BUDGET | Hostal Galaico
- MID-RANGE | Woohoo Rooms Boutique Gran VĂa
- MID-RANGE | Petit Palace Clipper Gran VĂa
- MID-RANGE | Catalonia Gran VĂa Madrid
- MID-RANGE | Riu Plaza España
- LUXURY | Hotel Montera Madrid, Curio Collection By Hilton
LUXURY | VP Plaza España Design
LUXURY | Hyatt Centric Gran VĂa Madrid

Chueca and Malasaña
Chueca and Malasaña are two traditional neighborhoods of Madrid that, despite being in the heart of the city, were for a long time off the beaten track. Today they are two very fashionable neighborhoods, each with its own personality.
Chueca is the neighborhood where you can find the most alternative and bohemian corners of Madrid, largely because it is the gay neighborhood of the city, but also because it is the favorite neighborhood of young people from very different backgrounds.
Malasaña is a more bourgeois neighborhood that has become the paradise of hipsters and trendy people. Its streets are full of pop art, stores with local and international brands and alternative venues with music of all genres.
In favor of staying in the neighborhoods of Chueca and Malasaña:
- the southern part of the neighborhoods, near Gran Via, is close to many places of interest.
- there is a wide range of accommodation, mainly hostels.
- although there are many narrow streets, the transport connections are good.
- they are two neighborhoods for those looking for alternative places.
On the downside:Â
- there is heavy presence of people, locals and tourists, day and night
- the noise near the night clubs can be annoying.
Chueca and Malasaña: recommendations
- BUDGET | Bastardo Hostel
- BUDGET | Hostal Los Alpes
- BUDGET | JC Rooms Chueca
- MID-RANGE | Ibis Styles Madrid Centro Maravillas
- MID-RANGE | Petit Palace Santa Bárbara
- MID-RANGE | ITC Infantas by Soho Boutique
- MID-RANGE | Eurostars Central
- MID-RANGE | 7 Islas Hotel
- LUXURY | Urso Hotel & Spa
- LUXURY | Only YOU Hotel Boutique Madrid
Other regions to stay in Madrid
We are going to mention several neighboring areas of the previous ones where it would not be a bad idea to book accommodation. But here it would be convenient that you have some knowledge of the neighborhood, because one location or another within the same area can greatly change your experience. Neighborhoods like Lavapiés, for example, have very different parts. And Chamberà or Salamanca are huge neighborhoods.
Keep those three names in mind, along with La Latina, as possible alternatives for your accommodation.
Wherever you go, always remember the rule of proximity to the metro.
We hope we have helped you to better choose your accommodation in Madrid. As always, if you have any questions about the subject of the video, take advantage of the comments box to ask.Â
Madrid’s self-guided walking tours
To help you optimize your time in Madrid and make the most of your visit, we have published our very own Madrid walking tours. They are electronic guides of our own, that will take you through the most important must-see parts of Madrid, including food stops along the way. No need to rack your brains on how to visit Madrid, we’ve done that work for you.
Our series of Madrid walking tours are part of our collection of walking tours dedicated to the most important cities in Spain and published through our Travel Guides Spain and Portugal brand.
Before we go, make sure you check our Madrid Travel Guide.

Hi Tony and Cecilia
Hope all is well. I ve learnt a lot on watching your Spain and Portugal Youtube channel. I m planning my first trip to Spain due within the 3 weeks time. I m travelling solo.
Wondering if you can give some guidance on the below:
1. Travel from Madrid airport to accomodation
I m arriving on Terminal T4S. Staying at 10 Calle de Luis Vélez de Guevara, Madrid City Center, 28012 Madrid, Spain. Should i take the Metro from Airport? If so do i need to change AT as specific station? Appreciate your guidance.
2. Tourist Pass
Once purchased, i.e lets say i first purchase a 1 day card – can i then reload for further days? i.e 2 more days based on which days i plan to be in madrid
Bom dia, Indika, everything alright here, thank you.
1. If you are travelling light, you could take the airport metro to Colombia, then line 9 to PrĂncipe de Vergara and then line 2 to Sol, and then walk approximately 10 minutes to your accommodation. Otherwise, take a taxi or VTC. Or the options are explained here.
2. You cannot reload the Tourist Pass. You can buy a new Tourist Pass. Be aware it is valid for entire calendar days.