Where to Stay in Madrid: Best First Time Areas + Hotel Picks

Where to stay in Madrid can be confusing on your first visit, as staying central can mean you still end up in the wrong place for your trip. The difference is usually noise, street choice, and whether your plans revolve around walking, museums, nightlife, or trains.

My guide helps you pick the perfect neighbourhood based on what you like and what you plan to do in Madrid. 

Quick answer: the best areas to stay in Madrid for first-timers

These are my top 3 city centre areas if you are after a quick decision:

• Barrio de las Letras. Best all-round base. Central, walkable, great food, usually less hectic than Sol.
• Barrio de los Austrias. Historic feel and pretty streets, often calmer than the main tourist corridor.
• Retiro and the museum triangle edge. Quiet-leaning, green, ideal for museums and better sleep.

If those do not fit, use my broader shortlist.

• Centro, Sol and Gran Vía. Maximum convenience for short stays. Highest late night noise risk.
• Malasaña or Chueca. Food, nightlife, and energy. Great if you book smartly.
• Salamanca. More polished, quieter, more comfort-led.
• Atocha and nearby. Practical if you’re doing train day trips or travelling with luggage.
• Barajas. Only for early flights or need a base near the airport.

My personal favourite if i’m forced to pick one is Las Letras, I love staying here as it has everything I want when I’m in Madrid.

Disclaimer: This article features affiliate links. If you click these links, and choose to book with that hotel or company, I will earn a small commission at no extra cost to you. I appreciate the support that allows me to continue providing this information

Madrid Hotel Neighbourhood chooser

A quick way to match your priorities to the right area. The point is to stop you picking purely on “central” and ending up somewhere too loud or too far out.

My Top Tip! If you want one safe default for a first trip, start with Barrio de las Letras and prioritise a quieter street.

First-timer map and how Madrid is laid out

Madrid’s centre is compact. What changes your experience is not usually distance. It’s street noise and whether you prefer walking everywhere or hopping on the metro.

The bit people get wrong is trusting the map pin alone. A better plan is to pick the neighbourhood you want, then choose a calmer street within it.

What counts as ‘central’ in Madrid

It’s the area where you can walk to major sights and food spots without needing the metro for every trip. That matters because it frees you to choose the neighbourhood that suits your pace, rather than overpaying for a perfect address.

Walkable vs metro-friendly: how to choose

If you like to wander and pop back for a break, choose more walkable locations (Letras. Austrias. parts of Centro). If you are happy with a short metro ride for a quieter base, or often a cheaper price, choose metro-friendly (Retiro Park edge. Salamanca).

My Top Tip! If you are considering booking “a bit outside” check the location against what you plan to do and your evening route home. You may save a bit on the hotel, but lose a chunk of time or money on public transport, make sure you weigh it all up.

What areas in Madrid suit my trip?

Pick based on how you like to travel and what you have planned when you are there.

If you want maximum sightseeing convenience

Pick Centro, Sol, or the quieter edges of Letras/Austrias. You’ll be in the middle of everything, but you must be picky about the street and room.

Best for: short stays where walking everywhere is the priority.

If you want a quieter stay

Pick Retiro park edge or Salamanca. You’ll still feel close, but your chances of a quieter night are higher.

Best for: light sleepers and travellers who want calmer evenings.

If you want food and nightlife on your doorstep

Pick Malasaña or Chueca, or a lively pocket of Letras. These are brilliant for evenings out, and it is still possible to find a quieter street, you just have to check reviews carefully

Best for: travellers who plan to be out late and want an easy walk home.

If you want museums and green space

Pick Retiro edge or Letras (near the museum triangle). You get museums, park time, and a relaxed pace at night.

Best for: museum-heavy days and a quieter night-time feel.

If logistics matter most (station or airport)

Pick Atocha and nearby if you have train day trips or early departures. Pick Barajas only if you have an early flight or a one-night stop.

Best for: trips where arrival and departure plans drive the decision.

Centro, Sol and Gran Vía: Best for convenience, worst for noise

This is the most central option. It can also be the easiest place to book yourself into late-night noise, great if you want it, but not if you don’t!

My Top Tip! These are great options if you only have limited time in Madrid, but I strongly recommend having a good look through recent hotel reviews as not all hotels are created equal here and there are some tourist traps you will want to avoid.

Choose this area if:

• You have 1–2 nights and want pure convenience.
• You want to walk almost everywhere.
• Crowds and a tourist-heavy feel do not bother you.

Avoid this area if:

• You are a light sleeper.
• You want quiet streets outside your door.
• You dislike constant crowds.

How to book Centro without sacrificing sleep

1. Pick the street, not just the pin. If the pin sits on a major road, keep looking.
2. Filter for quiet. Look for “quiet rooms” and “soundproofing” in amenities and reviews.
3. Request the right room. Ask for a high floor and an interior room if available.
4. Read the newest reviews. Noise can change quickly street to street.

Hotel Regina (by Gran Vía)

A classic “upgrade” choice for this area. It keeps you right in the middle of the action, but suits travellers who want a more polished feel than a basic city hotel.

Cost typical £170–£240  • Rating 9.4

Francisco I Boutique (Centro)

Small, straightforward hotel in the very centre. Good pick if you want a comfortable base where you can walk to most headline sights without paying “design hotel” prices.

Cost typical £180–£260 • Rating 9.1

Barrio de los Austrias: Historic Madrid with a quieter feel

Austrias suits first-timers who want a historic centre feel without the intensity of the busiest areas.

My Top Tip! Avoid booking right on a busy square, you’ll likely hear it late. There are lots of options on the quieter surrounding lanes without losing the convenience

What it feels like

Classic, walkable, and characterful, with a calmer rhythm in many pockets.

Who it suits best

• Travellers who want historic character and central walks.
• People who want evenings that feel less chaotic than Sol.

Common booking mistakes here

Many properties are smaller, which can mean smaller rooms and fewer facilities. If a lift matters to you, confirm it explicitly before booking.

Pestana Plaza Mayor Madrid

A standout location right by Plaza Mayor, ideal if you want Old Madrid on your doorstep and a more special-feeling base at the end of the day.

Cost typical £104–£243 • Rating 9.1

Hotel Meninas

A great-value base on the Austrias side of the centre, handy for the Royal Palace and Plaza Mayor walks. It’s a strong choice if you want the historic-core feel without paying a premium.

Cost typical £95–£150 • Rating 8.6

Barrio de las Letras: The best all-round base for first-timers

In my opinion, Letras sits in a sweet spot. Central enough to walk everywhere, lively enough for great evenings, and often less chaotic than the Sol and Gran Vía corridor. It is where I normally choose to stay.

My Top Tip! The bit people get wrong is assuming Letras is quiet everywhere, this is not the case, so do due diligence before booking.

Choose this area if:

• You want to be central without being on the busiest streets.
• You like being able to walk to museums and still have lots of dining nearby.
• You want a base that works for couples, friends, and short city breaks.

Catalonia Las Cortes

Set in a restored historic building and very well located for the museums. The standout perk is the free snack and drinks area that stays open into the evening, which is genuinely handy after a long day out.

Cost typical £120–£180 • Rating 9.3

Room Mate Collection Alba

Boutique feel in Madrid’s literary quarter, close to the Art Triangle. A strong step-up pick if you want a more design-forward stay while keeping the same walkable location.

Cost typical £125–£190 • Rating 9.2

Malasaña and Chueca: best for food, nightlife and a buzzy feel

These areas are ideal if you want to eat well and go out without travelling far. They are the busiest nightlife areas, so pick your hotel carefully.

My Top Tip! I love both areas, Malasaña in particular oozes cool, but avoid booking a street-facing room if you can

Malasaña vs Chueca: how they differ

• Malasaña feels more alternative and neighbourhood-led, with lots of casual food and late-night energy.
• Chueca is very central and social, with strong dining and easy access to other central areas.

How to sleep well in nightlife areas

1. Search reviews for “noise” and read the newest ones.
2. Choose places that mention soundproofing or quiet rooms, then confirm reviewers agree.
3. Request an interior room if you’re sensitive to street sound.
4. If you’re visiting in warmer months, make sure air con is clearly mentioned and reviewed positively.

7 Islas Hotel (near Gran Vía / Malasaña side)

Modern, design-led boutique option that still sits close to the centre. Solid choice if you want “cool hotel” energy without jumping to luxury pricing.

Cost typical £125–£160 • Rating 8.9

ibis Styles Madrid Centro Maravillas (Malasaña)

A reliable, good-value option right in the Malasaña mix, ideal if you want cafés and nightlife nearby but prefer a simple, value for money, easy hotel. 

Cost typical £75–£120 • Rating 8.8

Only YOU Boutique Hotel Madrid (Chueca)

A proper treat stay with a more premium feel, great if you want Chueca energy outside but a polished hotel to come back to. 

Cost typical £190–£280 • Rating 9.3

Room Mate Oscar (Chueca)

Stylish, central, and known for its rooftop bar. Good for first-timers who want to be near nightlife but still a good walking distance everywhere else.

Cost typical £110–£160 • Rating 8.8

Retiro and the museum triangle edge: best for quiet, parks and museums

This is the quieter option that still feels central. You’re close to the park and museums.

My Top Tip! This is a big area, you don’t want to stay too far out, I recommend you stay near Retiro park west edge, look for the Prado museum, so you keep walkability for all the big sights.

Families and light sleepers: what to filter for

1. Larger rooms or family rooms if you need space.
2. Lifts if you have a buggy or heavy luggage.
3. Quiet rooms or courtyard-facing rooms.
4. Clear air con mentions if you’re visiting in warmer months.

How central it feels day to day

You can still walk to many key areas, and the metro is easy when you need it. The trade-off is less nightlife on the doorstep.

Petit Palace Savoy Alfonso XII

Big location win next to the park. Ideal for families and still walkable to the centre.

Cost typical £81–£205 • Rating 8.5

NH Collection Paseo del Prado

Better suited to travellers prioritising the Art Triangle and a more traditional upscale hotel feel. Good step-up base if you plan to spend a lot of time around Prado-side sights.

Cost typical £160–£240 • Rating 8.6

Salamanca: best for a polished, quieter, upscale stay

Salamanca suits travellers who want comfort, quiet nights, and a more polished hotel base. True, it’s less characterful than the historic centre, but you get more consistent hotel quality.

My Top Tip! Avoid booking Salamanca expecting old-town energy outside your door. You’ll end up disappointed. If hotel quality and a quieter night matter most, Salamanca is a solid pick, especially for longer stays.

What it is like at night

Generally calmer, with plenty of dining, but less late-night street buzz than Malasaña or Chueca.

Barceló Emperatriz

A polished base in the Salamanca district, near the Serrano area. Works well if you want a relaxed neighbourhood feel while staying well connected to the centre.

Cost typical £145–£210 • Rating 8.8

Relais & Châteaux Heritage Hotel

Quiet luxury with standout service and little details that make the stay feel special, good for a longer stay or a big trip.

Cost typical £175–£243 • Rating 9.3

Atocha and nearby: best if your trip is built around trains and day trips

Atocha is a practical base if you’re doing train day trips, arriving with luggage, or leaving early. It can feel more functional than other areas, but it removes friction.

My Top Tip! The bit people get wrong is assuming all major trains use Atocha train station. That is not always the case, as some routes use Chamartín, so double check your journey before booking

Who should pick this base

• Travellers doing multiple train day trips.
• People who want easy arrivals and departures with luggage.
• Visitors who prefer a straightforward base over nightlife.

Only YOU Hotel Atocha

A higher-end option by the station that still feels like a destination hotel, useful if you have early trains but do not want a bland business stay. 

Cost typical £120–£220 • Rating 9.0

Barajas: only pick this for early flights or a one-night stop

Barajas is not a city-break base. It’s a strategic overnight choice when you have an early flight, late arrival, or a one-night stop, I wouldn’t recommend it beyond this.

When Barajas makes sense

• Early flights where you do not want a dawn transfer.
• Late arrival when you just want to sleep and start fresh.
• One-night stopovers.

Hilton Madrid Airport

Easy airport-area option with proper hotel facilities, including pools and a hot tub. Best for late arrivals, early departures, or a buffer night before flying.

Cost typical £105–£160 • Rating 8.5

Common mistakes first-timers make when choosing where to stay

Avoid choosing the cheapest place “near Madrid” and hoping it feels central. You’ll end up spending your evenings commuting. Better: stay closer in a quieter area, or choose a calm pocket inside a central neighbourhood.

Where to stay in Madrid FAQ’s