Where to Stay in Madrid - A Local’s Neighborhood Guide
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Madrid, the capital of Spain (and my home for the past several years), is one of those great European cities that you simply have to experience, especially if you want to begin to really understand Spain. It’s a mix of old-world charm and modern energy, shaped by centuries of history and smart modern planning.
This is such an amazing city that it genuinely lives up to the famous saying, “De Madrid al cielo” — meaning "From Madrid to heaven”. AKA, there’s nowhere better than here. As an adopted Madrileña, I can honestly say that’s true!
And while this is a legitimate metropolis - more than 3 million people call the city home - , Madrid is super walkable and well-connected by public transportation (metro and buses), and its neighborhoods feel surprisingly close knit and familiar, all built on a human scale.
So, as you begin to work out where you want to stay in the city, I’d suggest thinking first about the kind of vibe you're after: do you want a quieter spot to relax in after a day of exploring? Or are you looking to be right in the middle of the action? Do you want to be near museums and cultural centers, or do you prioritize somewhere with lots of green spaces? Do you want a residential, family atmosphere, or something more upscale and elegant?
Of course, as a local, I have my favorite neighborhoods as well as strong opinions on which areas I think make the best bases for visitors. And after having helped lots of visiting friends, family members, and colleagues decide where to stay over the years, I’ve honed my recommendations on their (mostly happy!) feedback, and think I have a pretty spot-on feel for where most people will enjoy staying.
So, below, are detailed descriptions of the 4 neighborhoods that I think are ideal for most visitors, especially anyone visiting for the first time or on a short trip. Let’s take a look!
Table of Contents
Madrid planning cheatsheet
Plan your itinerary with expert advice
- Book a Spain travel consultation with a local expert
My favorite hotels in Madrid
- Hotel Urban - chic and design-forward luxury property in Barrio de Las Letras. $300/night
- NH Gran Via - reasonably priced luxury on Puerta del Sol. $250-350/night
- Vincci Capitol - an excellent Vincci hotel right on Gran Via. $200-350/night
- Catalonia Las Cortes - great midrange boutique hotel in Barrio de Las Letras. $175-225/night
- Tribu Malasaña - Unique, colorful, and fun in the heart of Malasaña. $150-250/night
- Hotel Gavinet - a good budget option in the lovely La Latina neighborhood. $125-200/night
Guided tours and activities
- Private guided tours with Marijn (my favorite local guide)
- Small group tour of the Prado Museum (7 people max)
- Tapas & wine food tour
- Day trip to Avila and Segovia
- Full-day tour of Toledo from Madrid
How to get around
- Car rentals with DiscoverCars
- Train tickets from Renfe
- Metro and bus routes at Metro de Madrid
Overview of Madrid’s layout
Madrid's city center outlined in grey
Before we get into the neighborhoods, I think it’s important to quickly explain how the city is laid out and what its transportation system looks like, because these are crucial things to understand when choosing your base.
The first thing to know is that Madrid doesn't follow a strict grid system like many more modern metropolises. Because Madrid is flat and located in a wide plain with no natural barriers, there was nothing to stop or shape its growth. So, it simply grew out in an ever-expanding circle, all centered around Puerta del Sol, one of Madrid's two principal square (the other is the Plaza Mayor).
As the absolute heart of the city, Puerta de Sol is a bustling public space that is both the literal and symbolic center of Madrid. Its most important landmark, Kilometer 0, serves as the official starting point for all roads in Spain.
As you think about where to stay, you'll largely want to stick to the city center, which I've outlined in the map above. This isn't a well-defined area and everyone's definition of what is or is not part of the center will vary, but I still think it's helpful to have a rough idea.
To the west, the boundary is more or less the Palacio Real and Calle de Bailén
To the north, it’s Calle de Alberto Aguilera, the street that separates the neighborhoods of Malasaña and Chamberí
To the east, it’s the beginning of Retiro Park
To the south, the curving Ronda de Toledo/Ronda de Atocha (same road, just changes names) rounds it out
I’ve outlined these boundaries in the map above so that you can see what it looks like. Anywhere within or just around that circle counts as the very center of Madrid, and staying in any of these areas will mean you're rarely more than a 30-minute walk from anywhere you'll want to go.
This area is also extremely well-connected by Madrid’s metro system, and you’ll usually find a stop every couple of blocks. Buses also pass through here, giving you lots of transit options.
Quick summary of my 5 recommended neighborhoods
Madrid’s public transport system is so efficient and comprehensive that as long as you’re near a metro or bus stop, you can move just about anywhere in the city within 20 or 30 minutes. Staying in one neighborhood does not in any way make it inconvenient to visit the others, so as long as you stay relatively central, you can focus more on the atmosphere you’re looking for than the neighborhood’s location.
Even so, if this is your first visit or you’re just here on a short trip, I would prioritize staying central, as Madrid has a lot of marquee sights in the city center and you’ll probably spend the majority of your time visiting them.
You could easily take the metro back and forth each day, but I think it’s a lot more pleasant to be able to walk wherever you’re going straight from your hotel. So, the neighborhoods I’ve recommended are all within about a 20-minute walk of Puerto del Sol (some are a fair deal closer).
The five areas below each offer something unique and will appeal to different types of travelers. However, they all share the common trait of being central, well-connected by public transport, and really pleasant places to spend a few days.
Here’s a quick overview of them:
1. La Latina (black on the map above)
For the ultimate “castizo” atmosphere (meaning authentic Madrid vibe), La Latina is always my recommendation. It’s a central area with tons of historic charm, neoclassical and gothic streets, a vibrant tapas scene, and a lively, comfortable, and mostly local atmosphere. And it has an unbeatable location - just a 15-minute walk to the Puerta del Sol. This is where I would stay if visiting the city and it's where I recommend to friends and family.
2. Sol (red above)
The very heart of the city and Madrid's historic core, Sol is the obvious choice if your priority is easy access to Madrid’s most famous sights and landmarks. It's a beautiful area, the streets are labyrinthine and heavily pedestrianized, and almost all of the city's main sights are right here. The tradeoff for this convenience is that it’s extremely touristy, always crowded, and hotels are more expensive than elsewhere.
3. Barrio de las Letras (blue above)
Known as the literary quarter of Madrid (hence the name), this historic neighborhood has a great cultural scene, tons of pretty squares filled with excellent restaurants (including some frequented by Ernest Hemingway), and close proximity to many of the city’s top museums and city center sights. It's a bit more touristy than La Latina, but has more hotel options and a more stately, Old World atmosphere.
4. Malasaña (green above)
Malasaña was once Madrid's counterculture and artistic hub, although recent decades have seen a fair deal of gentrification. It's more commercial and international than it used to be, but it's still artsy, creative, and lots of fun. It's also the city's premier nightlife destination, so great for anyone in town to party. In terms of location, it's just north of Gran Via, so extremely central.
5. Salamanca (purple above)
The most elegant neighborhood in the city, this is where Madrid’s upper classes live and it’s the ideal place to enjoy a bit of luxury. Leafy and refined, you'‘ll find an abundance of upscale restaurants, high-end boutiques, luxury hotels, and fabulous cultural centers. It’s a bit removed from the center, so you'll need to plan on taking the metro or a cab when doing your sightseeing.
Map of my suggested hotels
For anyone who’s just looking for a quick collection of suggested hotels and doesn’t want to read through my individual neighborhood overviews below, here’s a map of Madrid that shows all the hotels that I’ve recommended throughout this guide.
These are spread across the 5 neighborhoods that I’ve suggested that you stay in, and they encompass a wide range of star levels and nightly prices, so everyone should be able to find something to suit their preferences.
And if you want to know more about the hotels, you’ll find quick descriptions of each of them in the “Where to stay” sections of the relevant neighborhood overviews below.
Happy (hotel) hunting!
1. La Latina
Best for: Just about everyone
Pros: Historic and charming, home to some of Madrid’s best bars and restaurants, walking distance to the main sights, feels local
Cons: Very few hotels; other than that, no cons for me!
Calle de la Cava Baja. Photo: ajay_suresh, CC BY 2.0, via Wikimedia Commons
Iglesia de San Pedro, with its Moorish belltower. Photo: CrisNYCa, CC BY-SA 4.0, via Wikimedia Commons
Iglesia de San Andrés. Photo: Francisco Anzola, CC BY 2.0, via Wikimedia Commons. Cropped
Plaza de la Paja. Photo: Jorgecft, CC BY-SA 4.0, via Wikimedia Commons. Cropped
If you want an authentic feel for old Madrid, you’ve got to have a caña and a pincho de tortilla in La Latina. The oldest neighborhood in the city, staying here will make you feel like you’re visiting Madrid in the 1500’s. Its origins date back even earlier though, as this is where the medieval Islamic citadel and ancient city walls stood during the time of the Moors.
While not many of the ancient buildings remain and the architecture that you'll see is primarily Baroque and Neoclassical, the layout of the neighborhood still feels very medieval, with narrow and winding streets that lead out onto lovely, spacious squares. Although the buildings are old, the commerce and businesses that you'll find are as modern as anywhere else in the city, evident from the hipster cafés, vintage shops, and quirky murals on buildings.
Plaza de Puerta de Moros, one of the original gateways to the medieval city, is La Latina's central plaza and a perfect example of the neighborhood's labyrinthine layout. Tiny streets branch off from it in every direction and are dotted with historic squares. It's incredibly atmospheric and when wandering around, you'll often feel more like you're in a medieval village than the center of a huge city.
When Spain’s capital was moved to Madrid in the 16th century, La Latina became the epicenter of the city's social life and it still feels that way today. During the day, you’ll find that it’s a relatively peaceful residential area that's very pleasant for strolling, but it really livens up in the evening. Beginning around 5:00 pm on weekdays and anytime on the weekend, locals fill the plazas and tiny little streets to enjoy tapas and drinks at the almost absurd number of fantastic bars and terrazas that line the sidewalks year-round.
The hub of social life in the neighborhood is Calle de la Cava Baja, a street that used to be house accommodation for visiting merchants and today has more than fifty bars and restaurants along it, many of which are really good. The area's mercantile and commercial history is preserved in the names of various neighborhood squares such as Plaza de la Cebada and Plaza de la Paja, which are named after the barley (cebada) and hay (paja) that merchants came here to sell centuries ago.
La Latina also has quite a lot to see and do right within the neighborhood, like a few lovely churches (Basílica de San Francisco el Grande chief among them), some pretty gardens, the famous open-air El Rastro flea market, the Mercado de la Cebada food market, and the monumental Puerta del Toledo - the last of the city gates, built in the 19th century.
Regarding getting around the city, there are 3 nearby metro stops - La Latina, Tirso de Molina, and Embajadores, which make moving about super quick and simple. You can also easily walk to places like the Plaza Mayor and the Royal Palace, and even the Prado and Retiro Park are only about 20 minutes away.
Despite all its appeal - beautiful architecture, great dining, and proximity to Madrid’s big sights - La Latina remains surprisingly local. You’ll certainly see other tourists, but it still feels authentically Madrid and it doesn't cater to visitors, meaning there are very few tourist traps. This is why I rate the neighborhood so highly. Other than a relative lack of hotels, there are really no downsides to staying here and it's my top recommendation for most visitors.
Where to stay
While there aren’t many large hotels in the area, there are lots of old quaint apartment rentals and a few boutique hotels that have been converted from old taverns. Surrounding these apartments and hotels are squares where kids run around after school and madrileños walk their dogs and do their shopping.
Here are some of the hotels I recommend:
Posada del León de Oro - This 19th century tavern-turned boutique 4-star hotel is very modern but has done a nice job of maintaining some of its traditional flavor. It’s right on Calle de la Cava Baja and about a 10-minute walk to Puerta del Sol. Rooms range from $150-300 USD.
Posada del Dragón - A 4-star boutique hotel with a modern and “style forward” design. At the northern tip of the neighborhood, you’re just a few minutes’ walk to the city center and right next to Calle de la Cava Baja and all the bars and restaurants there. $150 USD.
L&H La Latina - A quaint and clean modern 3-star hotel 300 meters away from Puerta de Toledo metro stop. Options of rooms or suites with kitchenettes. Centrally located in La Latina, it’s a 5 minute walk to Plaza de la Cebada and El Rastro market. $125-200 USD.
Hotel Gavinet - This is a simple but pleasant 3-star just a few steps away from the Puerta de Toledo metro stop. Many rooms have small terraces and there’s a nice rooftop pool and lounge area. $125 USD.
Apartment options - Clicking the link to the left will take you to a map of the La Latina neighborhood with highly rated apartments already selected.
2. Sol
Best for: Anyone prioritizing absolute proximity to the main sights; people who want to be in Madrid's grandest area; travelers with limited time
Pros: As central as it gets, gorgeous architecture, lots of major sights, always lively, great hotel selection
Cons: Very touristy, expensive, many restaurants are tourist traps, can get very crowded, not good for an extended stay
Puerta del Sol. Photo: Tomás Fano, CC BY-SA 2.0, via Wikimedia Commons
Gran Vía and the Edificio Metrópolis building.
Plaza del Callao at night. Photo: César Astudillo, CC BY-SA 2.0, via Wikimedia Commons. Cropped
Madrid’s Plaza Mayor. Photo: Sebastian Dubiel, CC BY-SA 3.0 DE, via Wikimedia Commons
As I've already mentioned, Sol, which is what I call the entire city center area surrounding Puerta del Sol square, is the symbolic and literal heart of the city. If you choose to stay here, you’ll be right in the center of everything, where Madrid’s energy, culture, and history all come together. This is where all the action starts, and from here, charming cobblestone streets weave off to the city’s grandest palaces, magnificent squares, countless museums, iconic monuments, and famous landmarks.
To quickly clarify, Sol is not a neighborhood, but rather just a way of referring to Madrid's absolute city center. It includes areas like Puerta del Sol, the Plaza Mayor, Gran Via, and the Palacio Real. This area - Madrid's historic core - is all pretty similar and staying anywhere within here comes with the same pros and cons.
In terms of atmosphere, it's incredibly lively and there's always something going on, from street performances to open-air movie theaters in summer, ice skating rinks in winter, constant live music, and an ever-changing array of food and artisanal markets. Plus, there’s a new pedestrian street that connects you directly to the Royal Palace and Templo de Debod (the best spot to watch the sunset in the city, by the way!).
Wandering through the narrow ancient streets (many pedestrian-only) is such a pleasure, and if you let yourself just get lost, you’ll be delighted to constantly find yourself stumbling upon magnificent squares and gardens one after the other. And whenever you feel like a break from the city, you have big parks on either side of you, with Parque de el Retiro a short ways away to the east, and Parque del Oeste (which has a great rose garden) just to the northwest.
Many of Madrid’s most famous streets and boulevards also run through here, such as Gran Viá (the city’s main commercial street), Calle Mayor (which takes you to Plaza Mayor and the Royal Palace), and Calle de Alcalá, which leads out to the Cibeles fountain (where Real Madrid celebrates their victories), neoclassical Puerta de Alcalá, Prado Museum, and Parque de el Retiro. You’ll also find the neon-lit Plaza del Callao, Madrid’s version of Times Square.
For transportation, you can walk pretty much everywhere you'll want to go, including most of the other neighborhoods I've listed in this guide. When walking isn't an option, three metro lines converge at Puerta del Sol, meaning you can get to most more distant areas without even needing to make a change.
While all of the above is great, this is by far the most intensely touristy part of the city, and it often feels like tourists outnumber locals, especially during busy times of year. Lots of restaurants cater to foreigners, and are therefore overpriced and mediocre, and you’ll find all the typical tacky souvenir shops and annoyingly pushy street vendors. Travelers who are really turned off by the idea of a touristy atmosphere and crowds of visitors would do well to consider other areas. As should anyone in town for a longer stay.
Even so, I think the benefits of staying in a gorgeous historic center and being just a few minutes’ walk from the city’s best sights outweigh the drawbacks. This is especially true if you’ll only be in Madrid for a couple of days, as you’ll be quite busy trying to fit all the sights in, most of which are right here.
Where to stay
**A quick note about staying here in summer: during the summer (but especially August), you’ll notice a rather different, quieter atmosphere in the city center. That’s because this is when locals take their summer vacation, and they desert the city en masse to escape the heat, heading for the beach or the mountains. So, if you prefer a more relaxed, laid back vibe, this is the perfect time to stay in this part of town.
NH Collection Madrid Gran Vía - Your best option in Sol for luxury at a relatively resonable price. It's immediately beside the Gran Vía metro stop and on the corner of pedestrianized Calle de la Montera, which leads straight to Puerta del Sol. Rooms are modern (but not minimalist) and comfortable, and the rooftop terrace is great for an evening drink. $300 USD.
Petit Palace Puerta de Sol - Housed in a lovely 19th-century building and just steps away from Kilometer 0, this boutique hotel nicely mixes reminders of the past with modern décor. $280 USD.
Hotel Riu Plaza España - This is the most elegant 4-star hotel in the center, in my opinion. It's very modern and has a splendid rooftop (with a pool) that has exceptional 360 views over the city. Near Gran Vía, it’s a 10-minute walk to Sol and the Opera and Royal Palace. $265 USD.
Hotel Vincci Capitol - Like all Vincci hotels, this is an excellent 4-star option with nice boutique touches. It's got a great location on Gran Vía and literally on top of the emblematic Capitol Cinema (which hosts lots of movie premieres). $240 USD.
Hotel Europa - Literally right on Puerta del Sol, Hotel Europa has probably the most enviable location in the entire city. The rooms are perfectly comfortable, if relatively basic, and the cost is surprisingly reasonable given its location. $220 USD.
Hotel Regente - Centrally located right on Gran Vía, the hotel is a 5-minute walk to Puerta del Sol and not much farther to the Royal Palace. A clean, modern, and comfortable 3-star option, this is a great place to between shopping sprees or busy days exploring the city. $180 USD.
Apartment options - Clicking the link to the left will take you to a map of the general area around Sol with highly rated apartments already selected.
3. Barrio de las Letras
Best for: Travelers interested in Madrid's literary history, culture lovers, people who enjoy a very “Old World” atmosphere
Pros: Rich cultural/arts scene, lots of great dining options, short 10-minute walk to Sol and the Arts District, good hotel selection
Cons: Can be noisy and crowded during busy times of year, little access to green spaces
Lovely Plaza de Santa Ana in the evening. Photo: Edgardo W. Olivera from Montevideo, Uruguay, CC BY 2.0, via Wikimedia Commons
Calle de las Huertas. Photo: Gerda Arendt, CC0, via Wikimedia Commons. Cropepd
The Cervantes statues in the Plaza de las Cortes. Photo: Zarateman, CC0, via Wikimedia Commons. Cropped
Calle del Prado, seen from Calle del León. Photo: Malopez 21, CC BY-SA 4.0, via Wikimedia Commons
Named after the great 16th and 17th century Spanish writers who once lived here, Barrio de Las Letras (which translates as “the Literary Quarter”) is a beautiful historic neighborhood lying in between Sol, the Paseo del Prado, and Retiro park. It's just a few minutes’ walk to any of these places.
If you’re into literature, as I am, then this is unquestionably where you should stay. As a tribute to its past resident writers - like Miguel de Cervantes (author of Don Quixote) and Lope de Vega - many of the neighborhoods’ streets even have literary quotes engraved in the pavement.
As soon as you arrive in the area, you’ll feel like you’ve stepped back in time to the world of great writers past; you’ll get to have drinks in the same historic bars they frequented; you’ll wander along the same cobbled lanes they took on late night strolls; and you’ll eat traditional Spanish meals at centuries-old restaurants where they dined. Even the hotel you stay in may have once been a pensión where they lodged!
Basically, this is a haven for anyone who loves books and culture or just wants to soak in the bohemian vibe of old Madrid. Long popular with wealthy Spaniards as well as expats and tourists, you’ll find a nice mix of local and touristic life here.
I think the vibe is pretty similar to La Latina, although it's a bit more touristic. Both neighborhoods look similar (very historic architecture), and Las Letras also has narrow, pedestrian-friendly streets, lovely buildings from as far back as the 16th century, and lots of beautiful squares.
Calle de las Huertas is the neighborhood’s main artery and runs right through the middle of it. Lined with colorful old palacios, you’ll find lots of second-hand bookshops, quirky little shops, and cozy cafés and restaurants popular with both locals and visitors. This is also a major nightlife street, and its bars stay open until well into the evening (far later than I can stay up anyways!). Calle de León, Calle del Prado, Calle Lope de Vega, and Calle Príncipe are 4 more interesting streets with lots to check out.
One of the most fun hangout spots in the neighborhood is Plaza de Santa Ana, a lively square with outdoor terraces and the famous Teatro Español (a government-run theater that puts on lots of classic Spanish plays). The square has been a popular meeting place for centuries and it totally reflects the neighborhood’s social scene.
Hemingway actually used to hang out here in the 1950’s, specifically at Cervecería Alemana, and he called it “a good place to drink beer and coffee” - high praise from him, I guess. Nearby is Café Central, a jazz club that has been a cornerstone of Madrid’s live music scene since the 80s, which always makes for a good evening.
For me, Barrio de Las Letras offers pretty much identical pros to La Latina, meaning that I really like it! I've recommended it lower because it's significantly more touristy and I prefer a more local atmosphere. Also, it's a bit more "refined", and I think lots of people will prefer the casual, down to earth vibe of La Latina. Regardless, it's a nice choice.
Where to stay
Hotel Urban - A member of “Small Luxury Hotels of the World”, this a gorgeous hotel with sleek design and rooms that are rich and sumptuously decorated. With a small rooftop terrace and pool, it’s also a great choice for warm-weather visits. $300 USD.
Melia ME Madrid Reina Victoria - 4-star hotel with amazing views to the Plaza Santa Ana. A 19th century palace-turned hotel, this will give you an urban taste of the city with modernist décor. Just a 6 minute walk to Metro Sol. $230 USD.
Hotel Catalonia Las Cortes - Great midrange boutique option. Housed in a beautifully restored 18th century building on Calle del Prado, the rooms here are clean and modern but classically and tastefully decorated. It’s very warm and inviting. $175-225.
Ibis Style Madrid Prado - Small, 3-star modern hotel with modern, comfortable and clean rooms. Amazing location, just a 5-minute walk to Sol. $180 USD.
Room Mate Alicia - This charming 3-star hotel overlooks the Plaza Santa Ana and has minimalist-style, colorful rooms. 10-minute walk to the Prado Museum and the Retiro Park. Puerta del Sol is just 5 minutes' walk away. $160 USD.
Apartment options - Clicking the link to the left will take you to a map of the Barrio de Las Letras neighborhood with highly rated apartments already selected.
4. Malasaña
Best for: Younger travelers; people interested in nightlife; anyone who likes an alternative vibe
Pros: Lively and creative, youthful, good nightlife, fun shopping, close to the city center
Cons: Noisy at night (especially on weekends), partiers out late, very little green space, doesn't feel particularly Spanish
Plaza Juan Pujol. Photo: Zarateman, CC0, via Wikimedia Commons
Calle Corredera Alta de San Pablo. Photo: Zarateman, CC0, via Wikimedia Commons
A side street in Malsaña. Photo: Zarateman, CC0, via Wikimedia Commons. Cropped
Plaza del Dos de Mayo. Photo: Nicolas Vigier from Paris, France, CC0, via Wikimedia Commons
Just to the north of Sol, the Plaza Mayor, and other city center sights, this historic neighborhood was once the center of the “Movida Madrileña", the counterculture movement that began in Madrid following the end of the Franco dictatorship. Although the area has changed over the years (becoming much more expensive and touristy), it retains its bohemian spirit and is still a hub for creatives and artists.
All along the narrow streets you'll walk past quirky bars, indie boutiques, vintage clothing stores, and trendy international restaurants. Although there are no specific tourist sights here, it has a very eclectic, artsy charm and is a lot of fun to wander around.
Over the last couple of decades it's become a very popular neighborhood with expats as well as hipsters with dreams of quitting their corporate jobs, which has definitely changed the atmosphere, and while still somewhat alternative and very fun, it's become both a bit more "mainstream” and a lot less traditionally Spanish.
Malasaña is also a major party area that's popular with twenty and thirty-something year olds who flock here in the evenings to eat, drink, and go out. The squares are always full of people in the evenings and this is a great place to be if you're looking to party and mix it up with locals. Plaza del Dos de Mayo is the social hub, and from there, streets like Calle Espíritu Santo, Calle del Pez, and Corredera Alta de San Pablo offer endless options for dining, drinking, and people-watching. Keep in mind, however, that the weekend in Spain starts after work on Thursday and nights run into the wee hours of the morning, so it's guaranteed to be loud until late.
Architecture-wise, the neighborhood is mostly 4 and 5-story colorful apartments blocks from the 18th and 19th centuries. The streets are narrow, walkable, and often one-way, giving the area an intimate feeling. Compared to Sol and other nearby neighborhoods, the buildings here have a distinctly less "cared for” look and it can feel a little rough in places even though it isn't.
The food scene here is great and super varied - you have options from traditional vermouth bars and simple sandwich shops to gourmet vegan fare, fusion spots, and natural wine bars. You also have lots of modern coffee shops, many of which are full of remote workers in the day and turn into cool little bars at night.
When it comes to getting around, Sol and the city center sights are just a few minutes’ away by foot and you have multiple metro stops on different lines which will take you all over town. It's a very convenient base for sightseeing.
I've tried to paint a balanced picture of the neighborhood, but, full disclosure, this isn't a part of the city that I personally love or spend much time in. There's no question that it's a fun area to go out in or wander through, and the artistic scene really is quite good, but it's a bit too young and party-focused, and I prefer areas with a more distinctly Spanish feel.
Malasaña has a lot going for it - great location, good food, bumping nightlife, plenty of art and culture - and lots of people will really like staying here. It's an especially good choice for travelers in their 20s and 30s, and those who like a somewhat alternative atmosphere and want to partake in some nightlife. If you're out of that age range, prefer cocktail bars to dives, really value a good night's sleep, or want a more Spanish atmosphere, you'll probably want to look elsewhere.
Where to stay
Gran View Apartments - These serviced apartments are spacious, very modern, and all come with nice kitchens. Many even have washing machines and some have lovely terraces. They are ideal for larger groups or anyone on a longer visit. $250+ USD (for a one bedroom).
7 Islas Hotel - Just off of Gran Via and on the border between Malasaña and Chueca, the location of this hotel is unbeatable. Inside, it's awfully nice too; all boutique vibes with design-forward furnishings and really neat touches. It's very nice. $200-300 USD
Smartr Madrid Apartments - Super pleasant 2 and 3 bedroom apartments just two blocks away from the neighborhood’s main square, Plaza del Dos de Mayo. $250-350 USD (for a 2 bedroom).
Tribu Malasaña - In the heart of the neighborhood, this hotel is a great midrange option. The rooms are big, bright, and colorful and the vibe is modern, a bit boutique, and unique. An added bonus, many of the rooms have little kitchenettes. $150-250 USD
Hostal Silserranos - A rather old-school hotel with simple, but nicely maintained rooms that are very good value. Nothing fancy, but it gets the job done. You’re also just a block from the Plaza del Dos de Mayo and the Tribunal metro stop. $100-150 USD
Hotal Palacio Luna - This little guesthouse is very simple and the rooms are on the smaller side, but it's immaculately clean, quite modern, and comfortable. It's also a really good deal for the area. $100-125 USD.
5. Salamanca
Best for: Upscale travelers; people interested in high-end shopping and dining; anyone in town for an extended stay
Pros: Most elegant part of Madrid with great access to high-end restaurants, cafés, and shops. Quieter and leafier than other neighborhoods
Cons: Expensive, not much nightlife, a bit removed from the city center, too upscale for some tastes (and wallets)
Calle Ortega Gasset. Photo: Luis García, CC BY-SA 3.0 ES, via Wikimedia Commons
The Casa Arabe. Photo: FDV, CC BY-SA 3.0, via Wikimedia Commons
Iglesia de San Miguel y San Benito. Photo: MaGrc, CC BY-SA 4.0, via Wikimedia Commons
Calle de Velazquéz. Photo: Luis García, CC BY-SA 3.0 ES, via Wikimedia Commons
One of Madrid’s most iconic neighborhoods, wealthy and stately Salamanca is the place to see and be seen for Madrid’s rich and famous. Beginning just north of Parque de El Retiro and a bit east of Sol and the center, this area has attracted the city's elite for generations.
Walking around, you’ll be struck by the beauty of the 19th-century neoclassical and modernist buildings, all with elegant façades, grand entrances, and lavish details on the windows and balconies. You'll even see artwork from famous artists like Joan Miró displayed right on the street. Unlike more central neighborhoods, Salamanca was neatly planned and is laid out in a grid. The streets and sidewalks tend be wider and walking around feels more open and less claustrophobic.
The heart of the neighborhood revolves around four of Madrid’s most exclusive streets: Calle Serrano, Calle Velázquez, and Calle de Goya, which all run parallel to one another, and Calle Ortega y Gasset, which runs perpendicularly across the other three. These streets are lined with ultra high-end boutiques and designer stores, from Jimmy Choo to Paco Rabanne, Dior, Hermes, and Rolex. There are also lots of local Spanish designers who you may not have heard of, but might want to upgrade your wardrobe with!
This part of the neighborhood is so well-known for its luxuriousness that it’s been nicknamed “The Golden Mile” (La Milla de Oro). The shopping is the main draw, but all of these streets have great architecture as well, ranging from historic to modern towers. There are also loads of chic cafés, lots of quiet, leafy streets, and some of the city’s most gourmet restaurants, which really come to life in the evening.
It’s not uncommon to spot a celebrity sipping coffee at one of the cafés or to catch a commercial or movie being filmed in the middle of the street. Much to my delight, I once spotted Chenoa, a popular Spanish singer, casually enjoying a café con leche at an outdoor terrace, and also stumbled upon a Nescafé commercial being filmed right on the street here!
Salamanca is perfect if you like luxury, are looking to splurge on shopping and dining, or just want to soak up Madrid's most sophisticated vibe. It's more than just a retail hub though, and since lots of people live here, there are all the normal shops and amenities that you’d want for every day life (albeit upscale ones).
While there aren't many traditional tourist sights here, as you'd expect for a wealthy and chic neighborhood it offers lots in the way of culture, including the Fernán Gómez Centro Cultural de la Villa (a great contemporary art museum), the Museo Lázaro Galdiano (housing works by Goya and Bosch) and the Museum of the Royal Mint, which many visitors will recognize from the Netflix TV show “Money Heist". Although foreigners may be mortified at the idea of me calling bullfighting "culture”, you also have the Plaza de Toros Las Ventas, Madrid’s grand, 20,000 seater bullring.
The main downside of Salamanca is that it's a bit removed from the city center. Although it's extremely well served by the metro, walking to Sol and the Plaza Mayor will take you more than 30 minutes so you will need to rely on public transport or taxis. It also isn't next to other neighborhoods that you'll probably want to visit, so you'll have to make dedicated trips anytime you want to explore them. Lastly, it's expensive and upscale, which means hotels cost more and finding cheap, casual meals can be tough.
Salamanca is quite different from the other neighborhoods I've recommended and it won't be to everyone's taste. It's a more modern area, it's wealthy, and it's the type of place you'd probably want to live in, but might not love for a short stay. It's an area I recommend to travelers who are settling in for more than just a couple days and want to stay somewhere that's simply pleasant to be in, even if it doesn't have obvious things to see and do.
Where to stay
Hotel Wellington & Spa - This iconic hotel right on the northern edge of Retiro Park has hosted famous names for nearing a century, from Hollywood celebrities to Spain’s royal family. A classic 5-star property in a gorgeous historic building, it’s one of the city’s very best. $300-$500 USD.
Totém Madrid - A luxury boutique hotel in a restored 19th century building along the Golden Mile. Rooms are surprisingly spacious and comfortable, and feel cozy like an actual bedroom. The location is unbeatable, in the center of Salamanca and a block or 2 from multiple metro stops. $300-$400 USD.
Catalonia Goya - 4-star hotel with a beautiful entrance and spacious and bright, lively rooms, many with very large windows. Exclusive location right on Calle Goya and next to Metro Velazquez, about a 20-minute rid to Sol. $200 USD.
NH Madrid Balboa - In the north of Salamanca, this is a stylish 4-star hotel with pleasantly contemporary décor. The location is great: one street off from Calle de Velázquez, a 5-minute walk to the nearest metro (Nuñez de Balboa), and a few blocks away from the tree-lined Paseo de la Castellana. $180 USD.
Hotel Serrano - Modern, 4-star hotel with a great location in a very peaceful area. The hotel has a classic ambiance and lots of careful attention to detail. 5-minute walk to the nearest metro stop, Ruben Darío. $170 USD.
Apartment options - Clicking the link to the left will take you to a map of the Salamanca neighborhood with highly rated apartments already selected.
Other neighborhoods to consider
I think the 5 neighborhoods described above represent the best choices for the vast majority of travelers, but if you’re looking for something different or just want to consider a few more options, here are 3 other central neighborhoods that I quite like.
2 of them, Retiro and Chamberí, are more residential and local, while the other - Lavapiés - is a somewhat alternative, immigrant-heavy area that is well-known and popular with budget travelers. All 3 of them are perfectly nice, but there are drawbacks to each, so you need to consider carefully when thinking about staying in them.
Here’s a quick overview:
Retiro
Probably the most picturesque and peaceful spot in Madrid, Retiro is just to the southeast of the center, on the opposite side of Parque de el Retiro. The main benefit of staying here is the access to the park and its lakes, gardens, and paths. It really is wonderful to start or end your days strolling through this magnificent green space.
As for the neighborhood itself, it has a relaxed, relatively upscale vibe, with plenty of good cafés and dining options, and a surprising amount of other smaller parks dotted all throughout it.
There aren’t many major sights in the neighborhood (other than the park), but lovely Salamanca is just to the north, Lavapiés isn’t far away (to the west), and Atocha train station is just south of you. There are a couple of Metro stops as well (along Calle del Dr. Esquerdo), so you have decent public transit options.
Being on the other side of the park has one major downside though: a long walk into the center (around 40 minutes).
Lavapiés
Just to the southeast of Sol and all the main tourist attractions, Lavapiés is a rapidly gentrifying area that’s long been a hub for immigrants. Once thought to be somewhat “rough”, that’s no longer really the case, and it’s a really busy and fun area filled with restaurants, bars, and cafes.
Its location is also excellent, around a 15-minute walk to Puerta del Sol, and just steps away from the Museo Del Prado, Retiro Park, the Reina Sofia musem, and Atocha train station.
There are two major drawbacks though: the neighborhood is down a steep hill from a lot of the major touristic sights, so you’ll regularly be doing a big uphill walk, and it’s noisy until quite late into the evenings, as people spill out onto the streets from the bars and restaurants.
Chamberí
Similar in some ways to Salamanca, Chamberí is a bit less ostentatiously wealthy. Slightly removed from the city center to the northwest, it’s very local and the crowd here is rather cultured, so you’ll find lots of great dining options, theaters, and artistic/cultural venues.
A charming, residential neighborhood, the vibe here is very laid-back and you’ll find tree-lined streets, quaint cafés, and old-school Spanish bars where locals hang out and chat over tapas. It’s a peaceful escape from the hustle of the city but is just a 10-minute metro ride to Sol (there are a bunch of metro stops in the neighborhood).
With its slower pace of life, it’s perfect for anyone who wants to experience Madrid like a local, enjoy some peace and quiet, and still be just a short ride away from all the action.
The drawback is that you have to take the metro any time you want to head into the center.
More Spain travel info
For more advice on planning your trip to Spain, have a look at some of our other guides and itineraries!
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