Madrid is one of the largest cities in Europe. Because of that, there are a multitude of hotels to choose from. Where you stay in Madrid makes a big difference as each neighborhood has a unique vibe and is famous for different things!

We called in our resident hotel specialist, Karen, who runs the fantastic boutique travel service Spain Less Traveled, to give her tips on choosing where to stay in Madrid. Here are Karen’s picks for the top hotels in Madrid and advice for deciding which neighborhood to stay in in this authentic and vibrant city!

Where to Stay in Madrid: Neighborhoods

There is no one size fits all answer for this. A lot is going to depend on your budget, travel style, what sorts of neighborhoods you vibe with, and more. That is why we included three categories of top hotels in Madrid.

The Literary Quarter

As a general tip, we at Spain Less Traveled recommend the Barrio de Las Letras neighborhood in Madrid, also known as Huertas or the Literary Quarter. It is centrally located (but without being right in the center), beautiful, has plenty of places to eat and drink and still maintains local charm and Madrid authenticity.

Malasaña

Malasaña, the neighborhood we explore on both our De Mercados: Neighborhood Market and Food Tour and our De Tapas: Evening Wine and Tapas Tour, is another fantastic neighborhood to stay in while visiting Madrid. Malasaña is perfect for those seeking a hipper side to Madrid, with street art, craft beer bars, and vintage clothing shops. Not to mention it has a huge selection of tapas bars, restaurants and 80s-style bars to explore!

If you’re unsure about choosing your accommodation in Madrid, take advantage of the travel planning services that Spain Less Traveled offers. Their team can personally advise you and give you some unique recommendations based on your budget, style, and preferences.

Top Hotels in Madrid

Since there is not a one size fits all answer to the eternal question of “where should I stay in Madrid?” we broke it down into a few categories.

Top Five Luxury Hotels in Madrid

Sometimes you want a little luxury when you travel. And there’s nothing wrong with that. Here are our top luxury hotels in Madrid:

URSO Hotel and Spa

Located in Malasaña just a stones’ throw away from where many of the Walk and Eat Spain tours begin, the URSO is one of our top hotels in Madrid. It’s a five-star hotel on the border between the trendy Malasaña neighborhood and the luxurious Salesas neighborhood. Ever dreamt of staying in a palace? Then the URSO is for you! This luxury hotel in Madrid is housed in a 20th century palace. Their concierge service is top-notch and their spa is perfect for those who need some tranquility in the midst of Spain’s bustling capital city.

Hotel Villa Real

This five-star hotel is located in Madrid’s Barrio de las Letras, a neighborhood which is such a good home base. Villa Real features a collection of both ancient and modern art, satisfying all types of art lovers. The hotel is the perfect blend of a classic Spanish hotel with luxury modern touches. And you are so close to Madrid’s major art museums, including the Prado!

Hotel Wellington & Spa

If you want five-star luxury then staying in Madrid’s most upscale neighborhood, Salamanca, may be a good idea. The Hotel Wellington is housed in a beautiful, stately building. There’s a rooftop garden and a renowned sushi restaurant on site. You are just a few steps from Madrid’s most luxurious shopping as well as the northern end of Retiro Park.

Círculo Gran Vía

This hotel is part of the Marriott family’s autograph collection, but don’t let that turn you off. Housed in a historic building right on Madrid’s Gran Vía, this hotel couldn’t be more centrally located.. This is a five-star, adults only hotel, so it’s perfect for a calm getaway in the heart of Madrid!

NH Collection Madrid Palacio de Tepa

Rounding out our list of luxury hotels in Madrid is the Palacio de Tepa, part of the NH Spanish chain of hotels. This particular property is part of their collection portfolio, offering unique stays in historical monuments. This hotel is no exception. Set in a 19th century palace in Barrio de las Letras, the Palacio de Tepa combines elegant amenities with Madrid’s incredible history. All of the convenience and fun of Barrio de las Letras is right at your doorstep!

Top Five Boutique Hotels in Madrid

Madrid is full of boutique hotels, some small and some large. They all combine elements of design, aesthetics, and vibe. Here are some of our favorite boutique hotels in Madrid:

H10 Villa de la Reina

Conveniently located on Gran Vía, this branch of the hip and upscale H10 chain of Spanish hotels is a true favorite. The H10 Villa de la Reina is housed in a cool, early 20th century building that features a well-designed lobby bar as well as an historic Madrid elevator (don’t worry, there’s a modern one too!). Some of the rooms have balconies overlooking Gran Vía. Madrid’s impressive central avenue.

Only You Boutique Hotel

Located in Chueca, Madrid’s gayborhood with vibrant nightlife, the Only You Boutique Hotel is a favorite amongst Spain Less Traveled clients. There is so much detail and attention paid to the design, both in the rooms and the public spaces. There is always something new to discover at this hotel. Celiacs take note that one of Madrid’s best gluten-free bakeries is next to the lobby!

Room Mate Alba

Don’t be put off by the name. This is not a hostel and you will not have a roommate named Alba! Instead, you will be steps away from Plaza Santa Ana on the main street in Barrio de las Letras if you stay here. This hotel features a beautiful patio (courtyard), and the rooms are designed to be welcoming and cozy.

Dear Hotel Madrid

Located on Gran Vía, the Dear Hotel is a four-star boutique hotel. It combines modern design with traditional Spanish charm. Be sure to go to the rooftop! There’s a plunge pool overlooking Madrid for guests to use as well as a restaurant and bar with spectacular views of the city.

Pestana Plaza Mayor Madrid

Looking to stay in one of the iconic Madrid buildings in Madrid’s main square, the Plaza Mayor? Then this branch of the Pestana brand is for you. Sleep well knowing you are literally dreaming inside of one of Madrid’s most historical sites. Luckily, this four-star hotel has good soundproofing as the area around the plaza can be noisy. But you can also enjoy the rooftop pool with views of Old Madrid.

Top Five Budget-Conscious Hotels in Madrid

It still is possible to have a nice stay in Madrid without paying an arm and a leg. Sure, these hotels lack the amenities of the more upscale options, but they are clean and (often) more modest Spanish style.

Hotel Mediodía

This classic no-frills Madrid hotel is conveniently located near the Atocha train station and the Reina Sofia Museum. Many of the rooms feature balconies. The common areas of the hotel will bring you right back to Old Madrid!

Hotel Motel One Madrid

The Motel One chain is an efficient brand of German hotels. Their Madrid location is right near Plaza de España and Gran Vía. This modern and friendly three-star hotel does not offer much in the way of amenities, but it is clean, comfortable and makes a great base for exploring Madrid.

Ibis Styles Madrid Centro Maravillas

This budget branch of the Ibis/Accor brand is located in Malasaña, Madrid’s hippest neighborhood. This small hotel will make you feel like you're in a mid-century theater. How cool is that?! Malasaña is the perfect location for Walk and Eat Spain guests as many of the tours take place in this neighborhood.

B&B Hotel Madrid Centro Plaza Mayor

This two-star hotel is located just steps away from Plaza Mayor. It is perfect for those who want to be thrifty and stay in the center of Madrid. Amenities are limited and rooms are small, but the hotel is clean and convenient.

Leonardo Hotel Madrid City Center

This large hotel is just north of the historic center of Madrid, but is still very close to many of the city’s main sights! Located on the northern edge of the Malasaña neighborhood, you’ll be staying in a true Madrid neighborhood filled with locals. Transit connections here are good, especially by metro. This is the perfect three-star choice if you’re looking for an authentic neighborhood vibe!

Need more advice?

These are just 15 of the hundreds of hotels in Madrid. Perhaps you are looking for something more specific or need additional advice about lodging in Madrid. The consultation services that Spain Less Traveled offers would be perfect for you. Whether it is deciding on where to stay in Madrid or planning any other aspect of your trip to Spain, our friendly and knowledgeable team would be thrilled to help you out!