Where to Stay in Madrid, Spain – The Best Areas & Neighbourhoods

Madrid is the capital of Spain and is widely regarded as one of the most beautiful cities in Europe. Around each corner lies architectural wonders, fascinating museums and authentic eateries that will give you a great deal of insight into the Spanish way of life. But one of the most challenging parts of planning a trip to this Iberian icon is figuring out where to stay in Madrid. 

In this guide, we discuss where to stay in Madrid for a variety of travellers. We highlight the best place to stay in Madrid for your first time, which will keep you close to some of the top attractions in Madrid. Then we showcase the best areas to stay in Madrid for nightlife and families, and detail the amazing things to do in each. 

If you’ve been planning a trip to the capital of Spain but can’t decide where to stay in Madrid, then this is the guide for you.

Where to Stay in Madrid for the First Time

If you’re visiting Madrid for the first time, you might be overwhelmed by the numerous neighbourhoods and vibrant districts of the Spanish capital. When staying in Madrid for the first time, you’ll want to be close to all the top attractions in the city, so a central location is a must. To help you decide, we will discuss the benefits of staying in Sol, a centrally located neighbourhood that is the beating heart of Madrid. 

Sol

Sol is one of the best areas to stay in Madrid for first-timers as it is right in the centre of the capital and has a range of exciting attractions and experiences. Staying in this vibrant hub allows you to see the very best of Madrid and its astonishing landmarks. From the Royal Palace to the bustling Plaza Mayor, Sol is one of the best neighbourhoods in Madrid for your first visit.  

It is also well connected to the rest of Madrid via public transport. The Sol Metro Station is connected to three lines, meaning you can travel to all corners of the city in no time. It also has excellent bus connections in Madrid which you can take full advantage of with hop on hop off tours and the Madrid tourist pass. 

Things to Do in Sol

There are some wonderful things to do in Madrid and staying in Sol means that many of them are just a short walk away. From busy squares to historic landmarks, you are spoiled for choice when it comes to things to do in Sol. 

The Royal Palace of Madrid is an absolute must for history enthusiasts and travellers visiting Madrid for the first time. This ornate architectural marvel is one of the best things to do in Madrid and draws in countless visitors with its extravagant exterior and opulent interior. We suggest getting your tickets for the Royal Palace in advance as it can get very busy, but fortunately, it is only a few minute’s walk away from the centre of Sol.   

While staying in Sol we would also recommend a trip to the Prado Museum. This astounding art museum is one of the most famous in the world and houses an impressive collection of European artworks, focusing on Italian and Spanish artists. A guided tour of the museum offers a more immersive experience but you can also visit the museum for free between 6 pm and 8 pm, but there will be long queues to enter.  

Where to Eat in Sol

Sol has a diverse culinary scene, with some of the best restaurants in Madrid right at your doorstep. Whether you crave authentic Spanish tapas or a light lunch in a cosy cafe, there are so many options for dining in Sol. You will also be delighted by the international cuisine in Sol, which features Italian trattorias as well as quirky ramen bars. 

Best Places to Stay in Sol 

There are some amazing places to stay in Sol that will suit a range of travel budgets. With energetic hostels and some of the best boutique hotels in Madrid, there is something for everyone in this vibrant district. Below you will find some recommendations for places to stay in Sol, Madrid. 

Budget

Travellers with lower budgets and backpackers in Madrid will find Mola Hostel has everything they need at a great price. This stunning hostel features dormitories as well as private rooms, making it ideal for solo travellers and larger groups. Plus, it’s just 300 metres away from Puerta del Sol and Plaza Mayor, keeping you right in the heart of Madrid. 

Mid-Range

Those seeking a more middle-ground accommodation in Madrid will be taken by the charming interior of Hotel Mirador Puerta del Sol. This hotel is right on the corner of Puerta del Sol and just 3 minutes walk away from the vibrant Gran Via district. What’s more, Sol Metro Station is just 20 metres from the hotel so you can explore Madrid to your heart’s content. 

Luxury 

Those seeking more lavish accommodation in Madrid will enjoy the opulence and convenience of Arenal Suites Puerta del Sol. These rental apartments are the perfect home away from home and offer a comfortable place to stay in Madrid. Being just 200 metres from Plaza Mayor and other central attractions in Madrid, it’s a great base for sightseeing in style. 

Where to Stay in Madrid for Nightlife

The nightlife in Madrid is legendary, with bars that stay open till dawn and lively clubs where you can dance your heart out. Of all of the areas and districts in Madrid, there is one that truly shines in the late hours. Having been revitalised in recent years and becoming a hip haven for young travellers and LGBTQ+ locals, Chueca is the perfect place for those seeking spirited evenings in Madrid.  

Chueca 

Chueca is one of the best places to stay in Madrid for young travellers seeking a diverse setting. It’s known for its inclusive and colourful LGBTQ+ atmosphere which also makes it one of the best areas to stay in Madrid for gay travellers. There is a unique ambience in Chueca, where the streets are lined with quaint cafes, colourful thrift stores and alternative outfitters.

It’s one of the best places to stay in Madrid for unforgettable nightlife. There is a delightful range of relaxed cocktail lounges, extravagant drag bars and establishments hosting live music. With such a varied offering, it’s one of the best areas in Madrid for a sensational evening.  

Things to do in Chueca

Staying in Chueca gives you the benefit of a central location in Madrid, meaning you can walk to many of the city’s top sites or jump onto the well-connected Metro. As you explore this area in Madrid, be sure to wander down Calle Fuencarral which is known for its excellent offering of shops and boutiques. Likewise, a stop at the Museum of Romanticism is a must-do, with its fine collection of paintings, sculptures and visual arts. 

One of the best things to do in Chueca is to explore the various gay bars and clubs that the area is known for. You can watch a high-energy drag show at LL Bar before dancing the night away in Black and White. If you’d prefer a more laid-back evening in Madrid, hit up Harvey’s Cocktail Bar or enjoy live music and comedy shows in Intruso

Where to Eat in Chueca

When it comes to dining in Chueca, there are bountiful options so it’s ideal for foodies as well. If you’re looking for a light bite, head to Mercado de San Aton where there’s a delightful selection of food stalls on the second floor. You can enjoy everything from sushi to tapas and even try some unique Indian street food, plus there is a gorgeous rooftop bar where you can share a jug of sangria and enjoy splendid views of the Madrid skyline. 

Aside from the market, there are a plethora of restaurants in Chueca where you can dine on delicious dishes. El Tigre is a popular bar where you get a free tapas dish with every drink you order. If you’re looking for something a bit more upmarket, Diurno Restaurant & Bar is a gorgeous setting where you can try local Spanish dishes with an elegant twist. 

Where to Stay in Chueca 

Being one of the most diverse areas in Madrid, it should come as no surprise that some of the best accommodation in Madrid can be found in Chueca. With boutique hotels and colourful hostels, plus some excellent dining just a short walk away there’s no better place to stay in this stunning city. We’ve highlighted some of our top picks for places to stay in Chueca that will suit a range of travel budgets. 

Budget

If you’re looking for a budget hostel in Chueca then room00 is a great choice. It is just 100 metres from Chueca metro station, giving you convenient access to the entirety of Madrid’s tourist attractions. With both private rooms and dorms as well as an onsite restaurant serving breakfast, lunch and dinner, it’s a great place to stay in Madrid while travelling on a budget. 

Mid-Range

If you’d prefer to stay in a boutique hotel in Madrid then Woohoo Rooms Fuencarral should be just what you’re after. The property is just 700 metres from the centre of Madrid and is close to top attractions like the Temple of Debod and Mercado San Miguel. There is also a tour desk at the hotel where you can get some great suggestions and travel planning advice from their helpful staff. 

Luxury

If you desire a luxurious place to stay in Chueca, Petit Palace is the hotel for you. Housed in a refurbished 19th-century mansion, this elegant accommodation in Madrid is beautiful both inside and out. With Gran Via just 25 metres away and Fuencarral Street a short 75 metres away, you can shop and dine within minutes of leaving the hotel.

Where to Stay in Madrid with Family

While there is abundant nightlife in Madrid, it’s also a great destination for a family holiday. The city is very safe and welcoming, with so many wonders and attractions that will appeal to travellers of all ages. If you are considering going on a family trip to the Spanish capital and find yourself wondering where to stay in Madrid with your family, then Retiro is just the place for you. 

Retiro

This tranquil area in Madrid is located east of the city centre and is named after the iconic park that extends throughout the neighbourhood, which has also been declared a UNESCO World Heritage site. It is much more residential than other parts of Madrid, offering a relaxed and calm atmosphere away from the bustling streets of Sol and Gran Via. This neighbourhood in Madrid is characterised by tree-lined streets and elegant buildings, making it ideal for families of all ages who want to experience the beauty of this Spanish city. 

Things to do in Retiro 

Retiro is filled with things to do but of course, we have to mention Parque del Retiro. This extensive park covers 125 hectares and has some of the best things to do in Madrid, so you could easily spend a whole day wandering this urban paradise. Families with children will enjoy rowing boats on the Big Pond and taking in the serene atmosphere. 

Within Parque del Retiro you will find some amazing Madrid attractions, like the Velázquez Palace and the Crystal Palace which serve as exhibition spaces for the Reina Sofía Museum. There is also Casa de Vacas, which hosts temporary cultural exhibitions and events which are certain to entertain the whole family. On weekends, it often hosts children’s theatre so it’s a great place to take the little ones while exploring the tree-lined avenues of the area. 

Where to Eat in Retiro 

There are some excellent places to eat in Retiro which are perfect for families visiting Madrid. With a good range of family-friendly eateries and fine dining establishments for older families, you are spoiled for choice when it comes to meals in Madrid. 

If you wander out of the area you will find Café de Oriente, a delightful bistro that has a welcoming terrace with views of the royal palace. For a morning family meal, you can stop into El Perro y La Galleta which is certain to entertain young children with its unique dog-inspired decor. Likewise, La Montería offers a laid-back dining experience with a menu that will suit all tastes in your travelling party, perfect for older travellers and young adventurers. 

Where to Stay in Retiro 

Retiro is a great place to stay in Madrid for families, with a good range of accommodation options. There are family-friendly hotels as well as rental apartments which will give you plenty of space and make you feel right at home. Below we have highlighted some of our top picks for accommodation in Retiro that is ideal for families visiting Madrid. 

Budget

If you’re looking for affordable family accommodation in Madrid then check out the Agumar Hotel. This hotel in Madrid is just 10 minutes away from the best art museums in Madrid and has easy access to the Metro. The hotel can provide spacious family rooms and includes a continental breakfast buffet that will fill up the whole family. 

Mid-Range 

If you’d prefer an apartment for your family trip to Madrid, Loft Deluxe is a great mid-range option. The apartment has a private entrance which makes it very secure and the rooms are beautifully decorated. It’s just 700 metres away from El Retiro Park and just 12km from the airport, making it a very desirable location for families. 

Luxury 

For a lavish family holiday in Madrid, there is no better place to stay than Genteel Home. The stylish apartments are just 600 metres from Atocha Train Station and include cooking and washing facilities which are great for families. There is also a tour desk available where you can have reservations and excursions booked with the help of friendly and attentive staff.  

Summary

Throughout this article, we have highlighted the best places to stay in Madrid that will appeal to a range of interests. Those visiting Madrid for the first time will find Sol to be just what they need, with easy access to top attractions in Madrid and a great atmosphere that they can immerse themselves in. Likewise, Chueca will appeal to party lovers visiting Madrid for its spirited nightlife, and the LGBTQ+ district is the perfect place to explore this unique offering. 

The best place to stay in Madrid for families is Retiro, which offers a quieter atmosphere away from the crowds. The lush park will delight families with children and the exhibition spaces are perfect for older travellers looking for a slow-paced escape.  

Have you been thinking about a Spanish sojourn? Check out our other articles like The Alternative Guide to Spain and What to Do in Madrid for 3 Days for more helpful travel tips and inspiration for your next adventure.

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About the Author

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Tom Adams

I am an experienced writer with a diverse background, having lived in 7 countries by age 16. I have specialised in various topics throughout my career, such as archaeology, sports and travel writing. Having grown up abroad I feel a special connection with the countries I once called home, in particular China, Singapore and Thailand. With my archaeological background, I also have a plethora of historical knowledge about Italy, Greece and Egypt. My favourite thing to do while travelling is visiting museums and historic landmarks and learning more about the local culture. As a foodie, I also make a point of sampling as much local cuisine as possible whenever I visit a new country. My favourite place I’ve visited so far has to be New Zealand, but I also loved Hong Kong and Copenhagen.