Not sure where to book a hotel for your upcoming visit to Madrid? – Here’s the ultimate guide on the best areas to stay in Madrid for first-time visitors, based on my numerous visits to the Spanish capital.

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Best areas to stay in Madrid for First-timers

Visiting Madrid for the first time

Visiting Madrid for the first time? – I wish I could swap places with you to get my first impression of the city all over again, as I honestly prefer it to the more famous Barcelona. For years, Madrid has been among my top 5 favorite city break destinations in Europe, and I’ve lost count of how many times I’ve visited.

While you can find plenty of ideas for things to do in the city (including itineraries under #Madrid), I wanted to share my personal experience of staying in each of Madrid’s neighborhoods. Having visited the city over 100 times – whether with kids, on a couples’ getaway, or solo – I’ve had the chance to explore many different parts of Madrid. The city has a fantastic metro system, which makes getting around much easier, and you can often find a hotel just about anywhere. However, there are definitely neighborhoods I’ve enjoyed more than others – plus, your choice also depends on how many days you plan to stay in Madrid.

Where to Stay in Madrid

1. Centro (Sol and Gran Vía)

The center of Madrid, or Centro – particularly the areas of Sol and Gran Vía – is the busiest and noisiest part of the city. At the same time, it’s the most popular choice for first-time visitors who want to stay close to major landmarks like the Royal Palace, Puerta del Sol, Plaza Mayor, San Miguel Market, and Gran Vía. I usually recommend this area if you only have one day in Madrid and want to make the most of it. It’s great for organized tours, shopping, dining, and nightlife, as it serves as the city’s main hub and offers everything you need.

On a more personal note, I can say that I only stayed in this area during my first visits to Madrid. It’s too noisy and crowded with tourists for my taste, and I feel it doesn’t reflect the city’s more sophisticated vibe. That said, I can’t deny that staying here is incredibly convenient for an intense sightseeing itinerary.

Hotel Recommendations

Budget-Friendly: Hostal Palacio Luna
Mid-Range: Hotel Riu Plaza España
Affordable Luxury: Only YOU Boutique Hotel
Top Apartment Pick: Madrid 1915 Private Suites

2. Barrio de Salamanca

Barrio de Salamanca is my personal favorite neighborhood to stay in Madrid – perfect for travelers who appreciate the city’s sophisticated and artsy vibe. This area is considered an upscale district, known for luxury shopping and refined dining. It’s quieter than the city center and feels incredibly elegant. I also love that it’s located right next to El Retiro Park, Madrid’s green hub, making it ideal for people who enjoy jogging in the morning or taking a relaxing stroll through the city’s central park.

It’s relatively close to the Prado Museum, but if you want to reach the city center, you’ll either need to walk for about 40 minutes or take the metro. Salamanca is also home to many cultural institutions and is filled with unique boutique hotels. Whenever I visit Madrid, I always try to stay in this area – it doesn’t feel as overwhelming as the center, like Gran Vía or Sol.

Hotel Recommendations

Budget-Friendly: Avenida De America Tijcal
Mid-Range: Zenit Abeba
Affordable Luxury: Wellington Hotel & Spa Madrid
Top Apartment Pick: Suites Barrio de Salamanca

3. Malasaña and Chueca

Malasaña and Chueca are the hipster-style neighborhoods of Madrid, known for their vibrant nightlife, quirky bars, cute cafés, and slightly bohemian vibe. They’re not as sophisticated and elegant as Salamanca, but I love their artistic touch and vintage shops. Chueca, in particular, is known as Madrid’s LGBTQ+ hub.

These neighborhoods are my second favorite area to stay in when visiting Madrid – the atmosphere is just great. Both offer plenty of budget-friendly rentals and hostels, making them especially popular with young travelers (though I’d say it’s less about age and more about the vibe).

Hotel Recommendations

Budget-Friendly: Hostal Palacio Luna
Mid-Range: 7 Islas Hotel
Affordable Luxury: Hotel Atlántico
Top Apartment Pick: Sonder Malasaña

4. La Latina

La Latina is another popular area to stay in Madrid. It’s a historic neighborhood known for its tapas bars and the lively Sunday flea market, El Rastro. Its narrow streets give it a unique charm, but you’ll find very few hotels here – mostly rental apartments. While it’s fairly central, it’s not as close to the main landmarks as Sol or Gran Vía, which makes it known for offering a more local and authentic city vibe.

Hotel Recommendations

Budget-Friendly: Porcel Ganivet
Mid-Range: L&H La Latina Selection
Top Apartment Pick: VR LATINA APARTMENTS

5. Atocha and Retiro

Atocha and Retiro are another popular areas to stay in Madrid, located near the famous El Retiro Park, but on the opposite side from the upscale Salamanca neighborhood mentioned earlier. This area is a great choice if you’re planning to explore Madrid’s renowned museums, as it’s close to the city’s so-called Golden Triangle of Art – which includes the Prado Museum, Reina Sofía, and Thyssen-Bornemisza. We stayed in this area during our last visit to Madrid in December with the kids.

It’s also conveniently located near Atocha, Madrid’s main train station, making it ideal for travelers without a car who are planning day trips by train – such as to Toledo. However, keep in mind that for a budget-friendly high-speed train connection to Valencia (or even Cuenca), you’ll need to depart from Madrid Chamartín station instead.

Hotel Recommendations

Budget-Friendly: LATROUPE Prado Hostel
Mid-Range: Hard Rock Hotel Madrid
Affordable Luxury: Atocha Hotel Madrid, Tapestry Collection by Hilton
Top Apartment Pick: Eric Vökel Boutique Apartments

6. Barajas (near the Airport)

If Madrid isn’t your final destination in Spain, and you’re planning to set off on any road trip from the Spanish capital – like this 3-week itinerary across the country – or if you have an early flight or a short layover, staying near Madrid’s airport in Barajas is a convenient option. It helps you avoid the hassle of driving in the city center, while also being the most budget-friendly option among all the hotels in Madrid. The area is well-connected by public transport, with the metro taking around 30 minutes to reach the city center and many of its main attractions.

Hotel Recommendations

Budget-Friendly: Hostal Los Coronales
Mid-Range: Hotel Maydrit Airport
Affordable Luxury: Hilton Madrid Airport

Tips for Choosing Accommodation in Madrid

So, as you can see, there are accommodation options in Madrid to suit every taste – from the most central locations and upscale neighborhoods to hotels near the train station and the airport. To choose your accommodation in Madrid more wisely, you should always start by considering how long you plan to stay in the city (since staying central can save time if you’re short on it) and which landmarks you’re most eager to visit (you can check the full list in my Madrid Bucket List post).

Other key factors to consider before booking a hotel in Madrid are:

• Proximity to Public Transport: As I’ve mentioned, Madrid has an excellent metro system. I recommend downloading the app Madrid Metro Map and Routes to navigate it easily.
• Cancellation Policies: Choose accommodations with flexible cancellation options in case your travel plans change.
• Safety: I’ve always felt safe in Madrid, but I’d say that Centro and Salamanca feel the safest. Centro is always lively and full of people, while Salamanca is an upscale neighborhood with a calm atmosphere. That said, always stay alert – pickpockets can be an issue, especially in crowded areas.

I hope this guide helped give you a clear overview of accommodation options in Madrid – being a first-time visitor in a new city can definitely feel overwhelming. If you still have any questions, feel free to drop them in the comments below. I’d be more than happy to share more details from my frequent stays in different areas of Madrid.

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