Finding a good place to stay in Madrid is not an easy task, especially if we take into account the amount of neighborhoods that the city has and the multiple options of hotels in each of them. Knowing this and to try to make this process as easy as possible, we want to give you our recommendations on where to stay in Madrid as well as a selection of hotels in each of them.
Based on our many visits to the city, in the last one we wrote this guide to Madrid, we leave you a selection of places to stay in Madrid and the best neighborhoods. Let’s get started!
Neighborhoods where to stay in Madrid
The city of Madrid is made up of 21 districts which in turn group 131 administrative districts. As you can expect we will not talk in this post about all of them and we will focus on those that are more touristic, more famous and above all, those that we believe, are the best options where to stay in Madrid.
As we have done in other cities, in some cases we will talk about districts and in other neighborhoods, depending on which we believe are more or less recommended to stay. In any case we will always comment so that you know the exact location of the best places to stay in Madrid at all times.
1. El Centro, the best place to stay in Madrid
The Centro district is undoubtedly the best place to stay in Madrid since this is where most of the tourist attractions of the city are located, such as the Prado Museum, Cibeles or the famous Puerta del Sol, among many others.
This district is divided into 6 neighborhoods: Palacio, Embajadores, Cortes, Justicia, Universidad and Sol, the latter being the most central and where we recommend you to look for accommodation, especially if your stay in the city will be a few days.
It is also important to know that all the neighborhoods are very well connected by public transport, especially the metro, which is the fastest and most comfortable means of transport to move around the city.
The price of accommodation in the Center is usually 100 euros but depending on the category of the hotel can reach 150 euros. There are also offers for less than 100 euros, although usually the quality is usually lower or have less favorable locations.
2. Salamanca, one of the most expensive areas to sleep in Madrid
Known for being the shopping district, Salamanca is the perfect place to stay in Madrid if you want to be in a central area, well connected and above all chic, which highlights the stately facades buildings that make this place one of the most elegant residential areas of Europe.
Here you can find most of the most famous brand stores, which dot the main arteries of the district, such as Calle Serrano, Velázquez, Príncipe de Vergara and José Ortega y Gasset, as well as a wide range of restaurants.
The district is divided into 6 neighborhoods: Recoletos, Goya, Fuente del Berro, La Guindalera, Lista and Castellana, the latter being, together with Recoletos and Goya, the most central and well known.
The price of accommodation in Salamanca is usually around 75 euros per night.
3. Retreat
This district, formed by the neighborhoods Pacífico, Adelfas, Estrella, Ibiza, Jerónimos and Niño Jesús, is known all over the world for being home to the famous Retiro Park, from which it gets its name. Although it is not our favorite place to stay in Madrid, all the neighborhoods are well connected to the rest of the city although it should be noted that, especially the area closest to the park, is one of the most expensive in the city.
In case you want to opt for this area to sleep in Madrid, we advise you to do so in the vicinity of Paseo del Prado, which is the one that sets the boundary with the Centro district or Calle de Alcalá which borders the district of Salamanca.
The price of accommodation in the Retiro is usually about 75 euros per night.
4. Chamartín, the best area if you want to be well connected in Madrid
Located in the northern part of the city, the Chamartin district is formed by the neighborhoods of El Viso, Prosperidad, Ciudad Jardin, Hispanoamerica, Nueva España and Castilla. Like the Retiro, for us it is not the best option to stay in Madrid unless you come only for a few days and want to make different trips from the capital and need to be close to Chamartin Station.
The whole area is very well served by public transport and also has a good gastronomic offer, especially in areas closer to the financial area.
The price of accommodation in Chamartin is usually around 50-75 euros per night.
Tips for finding cheap accommodation in Madrid
Although it may seem that finding a place to stay in Madrid is easy, we know that in many cases, having so many options to choose from, only makes the process more difficult and lengthens it. It is for this reason that we want to leave you some basic recommendations so you can find the best place to sleep in Madrid and the one that best suits your needs.

- Taking into account that prices do not vary too much between the districts that we have talked about in the post, we believe that the most suitable area to sleep in Madrid is the Centro district.
- If your trip to Madrid is during a holiday or event, it is important to book in advance to find good prices.
- Remember that to avoid paying commissions and to always have the current exchange rate we recommend you to use the Revolut card and the N26 card, which are the ones we use, are free of charge and will save you a lot of money.