Choosing where to stay in Madrid can shape your entire experience in Spain’s capital city. Each neighborhood has its own personality, from grand boulevards lined with historic architecture to trendy districts filled with tapas bars, boutiques, and nightlife. For first-time visitors, selecting the right home base means balancing convenience, culture, and character.
In this Madrid neighborhood guide, I will walk you through the best areas to stay in Madrid, highlighting what makes each one special. Whether you are looking for a stylish boutique hotel in Chueca, family-friendly comfort near Retiro Park, or a lively tapas-and-nightlife scene in Malasaña, there is a perfect barrio for every traveler.
This guide is designed to help you quickly identify the best neighborhood to stay in Madrid based on your travel style and the goals for your trip. By the end, you will know exactly which neighborhood is the best for your trip, complete with hotel recommendations, and how to make the most of your time in one of my favorite cities in the world.
Before diving in, check out our complete Madrid Travel Guide for insider tips, things to do in Madrid, restaurant recommendations, hidden gems in Madrid, the best day trips from Madrid, and more!
Table of Contents:
- Overview: The Best Areas to Stay in Madrid
- Best Neighborhoods in Madrid for First-Time Visitors
- Cool Neighborhoods in Madrid for Culture & Nightlife
- Upscale Areas to Stay in Madrid
- Best Location to Stay in Madrid for Day Trips
- Tips for Choosing the Best Area in Madrid
- Final Thoughts: Where to Stay in Madrid
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Overview: The Best Areas to Stay in Madrid
Each neighborhood in Madrid is unique, with its own story, style, and energy. Choosing where to stay in Madrid comes down to matching your travel itinerary and the goals for your trip with the right neighborhood.
Madrid Neighborhoods Guide
Madrid's neighborhoods can broadly be divided into two categories: those in the tourist center, where you will be steps from famous landmarks and the top attractions in Madrid, and those just outside of the tourist core, which offer a more residential feel.
Without further ado, here is a quick neighborhood guide to serve as an introduction to the main neighborhoods in Madrid frequented by tourists.
Central Neighborhoods in Madrid
These neighborhoods are either walking distance or a short metro ride to many of the top attractions in Madrid, including, but not limited to: the Royal Palace of Madrid, Puerta del Sol, the Prado Museum, and Retiro Park. I recommend these areas to most first-time visitors to Madrid since they are the most conveniently located.
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Austrias (Habsburg Madrid): A historic neighborhood where you will find some of
the top sites to see in Madrid, including the Royal Palace of Madrid, Almudena Cathedral, and Plaza Mayor. Austrias is ideal if you want to immerse yourself in Madrid’s historic center while being centrally located.
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Sol–Gran Vía (Centro): The heart of the city, packed with shops, theaters, and nightlife. Sol-Gran Vía is the best for first-time visitors who want to be in the middle of everything. This is also my favorite neighborhood to stay in Madrid!
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Paseo del Arte: Home to the Prado, Reina Sofía, and Thyssen-Bornemisza museums, the Paseo del Arte is Madrid’s cultural center. Paseo del Arte is the perfect neighborhood for art lovers and anyone who values easy access to Atocha Station (Madrid's main train station).
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Retiro: Defined by its UNESCO-listed Retiro Park, this area offers a greener, more relaxed vibe while still being close to cultural highlights. Retiro is a great area for families and/or travelers seeking a quieter base.
- Chueca: Trendy, colorful, and LGBTQ+ friendly, Chueca is buzzing with nightlife, trendy boutiques, and a vibrant atmosphere. Perfect for social travelers and night owls.
- Malasaña: Bohemian and youthful, Malasaña is known for its street art, indie shops, and nightlife. This neighborhood is great for creatives and younger travelers who thrive on energy and culture.
- La Latina: La Latina is famous for its tapas bars along Calle de la Cava Baja and the El Rastro flea market on Sundays. This is a great neighborhood for foodies!
- Barrio de las Letras (Literary Quarter): Once home to Spanish literary legends Miguel de Cervantes and Lope de Vega, today the Barrio de las Letras, or Literary Quarter, blends its literary history with cocktail bars and plenty of shopping. This neighborhood is great for those looking for nightlife without staying in rowdier neighborhoods like Chueca or Malasaña, while still being centrally located.
Outer Neighborhoods in Madrid
These neighborhoods are slightly beyond the main tourist areas of Madrid. While there are still plenty of hotels and accomodations in these neighborhoods, they will require you to rely more on public transportation to get around the city. These neighborhoods, as a whole, offer more local charm and specialized experiences (i.e., luxury shopping, football), than the neighborhoods that are more central.
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Salamanca: Madrid’s luxury district, with designer boutiques, Michelin-starred dining, and elegant boulevards. The Salamanca neighborhood is ideal for upscale and luxury travelers.
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Chamberí: A charming, residential neighborhood filled with local markets, traditional taverns, and authentic Madrileño culture. Chamberí is great for longer stays or those seeking a truly local feel.
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Moncloa–Aravaca: A mix of leafy parks and historic sights like the Temple of Debod make up the Moncloa-Aravaca neighborhood in Madrid. Well-connected and fairly quiet, this neighborhood is a balanced option for those who still want to be close to cultural sights, while having access to green space.
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Castellana: Castellana is a modern business hub anchored by the Santiago Bernabéu Stadium. This is a practical choice for business travelers or Real Madrid fans looking to catch a football match during their time in Madrid.
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Ventas: Ventas is home to Madrid’s famous bullring, Plaza de Toros de Las Ventas, hence the name Ventas. This neighborhood is the least touristy of those on this list, with a traditional, local feel. My brother actually lived in Ventas when he was an exchange student in Madrid, so I know this neighborhood fairly well thanks to him!
From regal Austrias to bohemian Malasaña, Madrid’s neighborhoods offer something for every type of traveler. The key is choosing the best area to stay in Madrid that matches your interests, whether that is history, food, art, nightlife, green space, or luxury shopping.
Best Neighborhoods in Madrid for First-Time Visitors
If you are deciding where to stay in Madrid for a first trip to the city, I recommend starting in the city's ultra-central core. Sol-Gran Vía places you steps from the top attractions in Madrid and plenty of metro lines, Paseo del Arte mixes museum-hopping with easy access to Atocha Station for train trips, and Austrias delivers royal landmarks and old squares within a compact, walkable grid. These are the best neighborhoods in Madrid for maximum convenience and minimal logistics.
Sol-Gran Vía (Centro)
Buzzing, central, and endlessly walkable, Sol-Gran Vía is, in my opinion, the best location to stay in Madrid for sightseeing (especially for first-time visitors to Madrid). You are steps from Puerta del Sol, the center of the city, Gran Vía’s theaters and stores, and multiple metro lines that make transportation to the rest of the city a breeze. The main trade-off by staying in this neighborhood in Madrid is the street noise, especially late night, so look to book interior or higher-floor rooms.
Top Attractions in Sol-Gran Vía
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Puerta del Sol: Puerta del Sol is the center of Madrid and home to Kilometer Zero (the starting point for Spain's highways). The square is anchored by a clock that rings in the New Year, an iconic neon advertisement for Tío Pepe sherry, and a statue of the Bear and Strawberry Tree. Looking to learn more about Puerta del Sol? Check out my blog,
From Palaces to Plazas: The Top Sites to See in Madrid.
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Gran Vía: Gran Vía is a grand boulevard that is famous for its early 20th-century architecture, theaters, and shopping. The boulevard is the most scenic at dusk when the façades glow and the iconic “Schweppes” sign lights up the skyline.
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Plaza de Callao: Plaza de Callao is the square next to the Cines Callao (Callao Movie Theater), along the heart of Gran Vía. The El Corte Inglés department store in the square offers fantastic views of the surrounding area from its Gourmet Experience food court on the top floor.
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Chocolatería San Ginés: No trip to Madrid, in my opinion, is complete without a stop at Chocolatería San Ginés! This late-night institution has been serving churros con chocolate since 1894. It is a popular spot with both locals and tourists. Order at the counter and either take your churros to-go or grab a table and enjoy!
Best Hotels in Sol-Gran Vía
Since Sol-Gran Vía is my favorite area to stay in Madrid, I have a number of hotels that I recommend in the neighborhood. I have stayed at all of these hotels with the exception of the Four Seasons Hotel Madrid. However, I have been inside of the Four Seasons Hotel Madrid and it is gorgeous and definitely on my list for a future trip to this incredible city.
Paseo del Arte
Anchoring the city’s east-central corridor, the Paseo del Arte stretches between Plaza de Cibeles and Atocha, placing you beside the Prado, Reina Sofía, and Thyssen-Bornemisza museums. The neighborhood is one of the best-connected spots in Madrid thanks to Atocha Station (high-speed AVE trains, Cercanías commuter trains, and the metro), which makes a Toledo day trip from Madrid incredibly easy. Streets are broad, walkable, and calmer at night than Sol-Gran Vía. If you are deciding where to stay in Madrid and museums or rail access are priorities, this is a smart, stress-free base.
Top Attractions in Paseo del Arte
- Prado Museum (Museo del Prado): The Prado is Spain's answer to the Louvre and houses the works from many of the Renaissance masters, including Botticelli, Titian, Caravaggio, Veronese, Raphael, and of course, the Spanish masters (Velázquez, Goya, El Greco). The main thoroughfare in this area is called Paseo del Prado, in honor of the museum. The Prado is a must-visit for first-time visitors to Madrid!
- Reina Sofía Museum (Museo Reina Sofía): Home to a vast collection of modern and contemporary art, the Reina Sofía is worth a visit just to see Pablo Picasso's Masterpiece, Guernica. (It is arguably one of the most important pieces of art created in the 20th century.) If you are looking to learn more about this work (as well as some of the other highlights in the collection), check out my blog, From Palaces to Plazas: The Top Sites to See in Madrid.
- Thyssen-Bornemisza Museum: The Thyssen-Bornemisza bridges the gap between the Prado Museum and the Reina Sofía with a collection spanning from medieval to modern art in a single, digestible museum.
- Royal Botanical Garden: Located next to the Prado Museum, the Royal Botanical Garden offers a quiet reset between the world-class museums that dot the Paseo del Prado. The garden contains over 5,500 different species of plants arranged in beautifully designed terraces and greenhouses.
- Plaza de Cibeles: This plaza is known for its grand Neoclassical architecture and large fountain (Fuente de Cibeles) which features the Roman goddess Cybele in a chariot drawn by lions. This plaza is the intersection of several major roads in Madrid, including Paseo del Prado, Calle de Alcalá, and Paseo de Recoletos. If you are a Real Madrid supporter, then you will know that this is where fans of the football club have historically celebrated their victoires.
Best Hotels in Paseo del Arte
I have never actually stayed in the Paseo del Arte neighborhood of Madrid, but my in-laws did on their trip last autumn, staying at The Palace, A Luxury Collection Hotel which they enjoyed. Some other, highly-rated hotels in the neighborhood are listed below.
Austrias
Located just west of Sol-Gran Vía, Austrias is historic and beautiful. The Royal Palace, Almudena Cathedral, and Plaza Mayor are all within a compact grid of cobblestone streets and grand squares. It is one of the best areas to stay in Madrid if you are looking for culture, while still being centrally located. Multiple metro stations are within a 5-10 minute walk and nearly every major sight can be reached on foot.
Top Attractions in Austrias
- Royal Palace (Palacio Real): The largest royal palace in Europe, the Royal Palace of Madrid is full of lavish state rooms! Since the King of Spain and his family do not reside here, some of the state rooms are open to the public for tours. Just make sure to rent an audio guide for your visit since signage inside the palace is lacking!
- Sabatini Gardens: These former palace gardens offer some of the best views of the Royal Palace of Madrid, especially at golden hour! Plus, they are completely free to visit.
- Almudena Cathedral: While most cities in Spain boast centuries-old cathedrals, the one in Madrid is relatively new, opening in June 1993. While the cathedral itself is rather underwhelming, do not skip the crypt or the dome terrace for some incredible views of the Royal Palace.
- Plaza Mayor: One of Madrid’s most beautiful plazas, Plaza Mayor is distinguished by its arcaded walkways and a striking central statue of Philip III, a spot well worth a visit.
- Mercado de San Miguel: Madrid's most famous food hall and market, housed inside an elegant iron-and-glass structure. The market is perfect for enjoying a meal of tapas, but come in the evening to avoid the crowds.
- Teatro Real: The city's grand opera house hosts world-class productions just opposite of the palace. If you are not attending a performance, the theater is open for guided tours.
- Plaza de la Villa: A compact square that preserves some of Madrid's best Medieval architecture.
Best Hotels in Austrias
Considering how many times I have visited Madrid, I have actually only stayed in Austrias once and it was at the Petit Palace Plaza Mayor back in 2017. While some time has passed, the hotel was great and it continues to have good reviews. I always recommend Petit Palace hotels for families traveling to Spain because they offer rooms that sleep three and four people comfortably. Some other popular hotels in Austrias, include:
Cool Neighborhoods in Madrid for Culture & Nightlife
For travelers who plan their days around cafés, art galleries, off-the-beaten path attractions, and nightlife, these cool neighborhoods in Madrid fit the bill. Malasaña brings bohemian energy, thinkL street art, indie shops, and live music. Meanwhile, Chueca is stylish, proudly LGBTQ+, and known for excellent dining and nightlife. If you want the best neighborhood to stay in Madrid for late-night fun, start here.
Malasaña
Northwest of Sol-Gran Vía, Malasaña is still central but distinctly bohemian, with cafés, indie shops, and some of the city’s liveliest nightlife. Several metro stations are located within the neighborhood, making cross-town trips quick while keeping you one stop away from the action on Gran Vía. Expect buzzy evenings and later nights on weekends.
Top Attractions in Malasaña
- Plaza del Dos de Mayo: This plaza is the heart of the Malasaña neighborhood and named for the 1808 uprising against the Napoleonic invasion. The monument in the center of the square honors two of the fallen soldiers from this historic event, Luis Daoiz y Torres and Pedro Velarde y Santillán.
- Liria Palace (Palacio de Liria): One of my favorite hidden gems in Madrid, Liria Palace is open to the public for guided tours showcasing an impressive collection of art, antiques, and rare books, all inside a beautiful 18th century palace. Liria Palace remains the home of the Dukes of Alba, a Spanish noble family, and their Casa de Alba Foundation.
- Mercado de San Ildefonso: A relaxed food hall on Calle de Fuencarral spread over 3 levels. The market is busiest at lunchtime and late night (the market stays open nightly until midnight, with extended hours until 1:00 AM on Fridays and Saturdays).
Best Hotels in Malasaña
While I love a number of bars and restaurants in Malasaña, I have never actually stayed in this neighborhood. However, I have visited the Hotel Riu Plaza de España for its 360º Sky Bar on the 27th floor (minus the steep charge to visit, the views are fantastic). From the parts of the hotel that I saw, it looked beautiful and it is highly rated. Some other popular hotels in Malasaña, include:
Chueca
A few blocks northeast of Gran Vía, Chueca is stylish, central, and proudly LGBTQ+. The neighborhood is full with boutiques, restaurants, and plenty of nightlife. You’re a short walk to multiple metro stations and can be in Sol-Gran Vía, the museums, or Salamanca within minutes. Energy runs high late, especially around Pride in early summer. I recommend staying in Chueca if you are in search of a sociable base with great dining and quick connections across the center.
Top Attractions in Chueca
- Mercado de San Antón: A gourmet market covering three levels, selling everything from groceries, to tapas, and sweet treats. The real draw, however, is the rooftop bar, 11 Nudos Terraza Nordés.
- Museum of Romanticism (Museo del Romanticismo): This intimate 18th-century mansion-turned-museum feels like a step back in time. The museum's collection includes paintings, furniture, and decorative arts that are representative of the Romantic period.
Best Hotels in Chueca
Out of all of these neighborhoods in Madrid, I have probably spent the least amount of time in Chueca. With that being said, two highly rated hotels in Chueca are listed below.
Upscale Areas to Stay in Madrid
Prefer polished streets and quieter nights? Salamanca is Madrid’s upscale neighborhood filled with designer boutiques, refined restaurants, and easy metro links. Meanwhile, Retiro offers an elegant base beside the park that is especially good for families. Both neighborhoods deliver a calm vibe, making them the best area to stay in Madrid without sacrificing access to the sights.
Salamanca
East of Retiro Park, Salamanca is Madrid's upscale neighborhood, featuring wide boulevards, flagship luxury boutiques on Calle Serrano, and five-star hotels. Metro coverage in the area is excellent and taxis are easy to hail, so you are never far from the Prado, Gran Vía, or the Royal Palace. Nights are quiet and calm. There are also plenty of incredible restaurants in the area, including one of my favorites - StreetXO. Salamanca is more residential than some of the others listed in this Madrid neighborhoods guide, but that does not mean there is any shortage of things to do! Salamanca is ideal if you are looking for a quieter neighborhood in Madrid, while still being close to many of the top attractions in Madrid.
Also, I want to mention that if you happen to be traveling to Madrid between late November and early January, then you should absolutely stay in Salamanca! Salamanca is beautifully decorated for the holidays and makes Christmas in Madrid even more magical!
Top Attractions in Salamanca
- Luxury Shopping: Calle Serrano is home to flagship boutiques (Cartier, Loewe, Louis Vuitton, Gucci, etc.) and upscale department stores, perfect for window shopping or a full-blown shopping spree.
- Lázaro Galdiano Museum (Museo Lázaro Galdiano): Another one of my favorite hidden gems in Madrid, this mansion houses an incredible private collection, including works by Goya and Bosch. Plus, it is rarely crowded!
- Plaza de Colón: As the name suggests, this square commemorates Christopher Columbus (Cristóbal Colón). The large square borders the Chamberí, Salamanca, and Centro neighborhoods of Madrid.
Best Hotels in Salamanca
My favorite hotel in Madrid is located in Salamanca, the Hotel Fenix Gran Meliá. The hotel is gorgeous and the on-site dining is also fantastic! Some other popular hotels in Salamanca, include:
Retiro
Skirting the park's northern and eastern edges, the Retiro neighborhood offers a relaxed, but elegant spot that is still minutes from Plaza de Cibeles and many of the museums in Madrid. Multiple metro stops surround Retiro Park and can you easily walk to Atocha in 15-20 minutes depending on where exactly you stay in the area. Retiro offers a relaxed, yet still upscale vibe with wide sidewalks, boutiques, and cute cafés. The close proximity to the neighborhood's namesake park also makes the neighborhood a favorite for families.
Top Attractions in Retiro
- Retiro Park (Parque del Buen Retiro): This extensive park is home to a variety of landmarks and sights, including: the large artificial lake (Estanque del Retiro), the Crystal Palace (Palacio de Cristal) which occasionally hosts free contemporary art exhibitions, a formal rose garden (La Rosaleda), and the Paseo de la Argentina which includes a series of statues depicting Spain's monarchs.
- Puerta de Alcalá: This large, former city gate, frames the entrance to the northwest corner of Retiro Park.
Best Hotels in Retiro
I have stayed in Retiro twice, although I would only recommend one of the two hotels that I have stayed at in the area, Hotel Claridge Madrid. The hotel was nice and about a 10-minute walk from Retiro Park, with a metro station just across the street from the hotel in Plaza del Conde de Casal. Other highly rated hotels in Retiro, include:
Best Location to Stay in Madrid for Day Trips
If your itinerary includes a Toledo day trip from Madrid, one of the most popular and best day trips from Madrid, I recommend that you base yourself near Atocha Station, where trains to Toledo depart from and Madrid's main train station. As I have previously mentioned, the Paseo del Arte neighborhood is going to be the closest neighborhood to Atocha. Staying in the Paseo del Arte neighborhood places you within a 5-10 minute walk to the station. Atocha is also home to a large metro station of the same name, making it easy to get to the other train stations in the city if you are planning other day trips from Madrid. The Paseo del Arte neighborhood is the best choice when day-tripping by train is a priority!
Day Trip to Avila
Planning a day trip to Avila? Trains depart from Madrid's Príncipe Pío station, so staying in Sol–Gran Vía, Austrias, or Malasaña will ensure you are close. All three of these neighborhoods are centrally located, well-served by multiple metro lines (and walkable to Príncipe Pío in many cases), so you can be on your way to see medieval walls and Romanesque churches without a long cross-town transfer.
Day Trip to Segovia
For a Gran Vía, trains leave from Madrid Chamartín. If you are short on time in the city but want to fit in a trip to see Segovia's incredible Roman aqueduct, cathedral, and castle, then consider staying near Chamartín (the broader Castellana/business district works well too). You will definitely trade the historic ambience for the convenience of staying closer to the train station, but if you are short on time this could be a good option.
Madrid Chamartín is also home to a large metro station, offering direct connections to Puerta del Sol, Gran Vía, Paseo del Arte, and Atocha. So, in the event that you are looking to stay more central while still enjoying a day trip from Madrid to Segovia, consider basing yourself in either Sol-Gran Vía or Paseo del Arte.
Tips for Choosing the Best Area in Madrid
When I pick a hotel room in Madrid (or anywhere for that matter), I prioritize central locations close to public transportation, then check hotel rooms for the comfort and amenities that meet my needs. To help you select a hotel and where to stay in Madrid, I have put together the following tips to make this process even easier for you!
- Start with your priorities. List your top five must-dos while in Madrid (i.e., palace, museums, tapas bars, nightlife, green space) and pick the neighborhood that minimizes the transit time to those must-do activities.
- Stay central for short trips. If you only have two or three days in Madrid, the best location to stay in Madrid is the core: Sol-Gran Vía, Austrias, or Paseo del Arte so you can walk almost everywhere.
- Use transit as a tiebreaker. Aim to book a hotel within a five minute walk to a metro stop (ideally an interchange station). If you are undecided between a few hotels, then look to see how close the nearest metro station is located. I personally think that staying close to a good metro station is more important than shaving one block off of your walk to a landmark or museum.
- Match the vibe to your sleep needs. Looking for quiet nights? Stay in Retiro, Salamanca, or even Chamberí. If you are in search of energy and late dinners? Check out Malasaña, Chueca, or La Latina.
- Plan around day trips from Madrid. If you will be taking trains while in Madrid, base yourself by the station you will use: Atocha for a Toledo day trip (stay in Paseo del Arte), Príncipe Pío for a day trip to Avila (handy from Sol–Gran Vía, Austrias, or Malasaña), and Chamartín for a day trip from Madrid to Segovia (consider Castellana/near Chamartín). For more detail, see the Best Location to Stay in Madrid for Day Trips section above.
- Book with noise and rest in mind. If you are staying near or in one of the busier areas in Madrid (Sol-Gran Vía, Malasaña, Chueca), consider asking for an interior/courtyard room or a higher floor.
- Mind arrival/departure logistics. Are you arriving and/or departing from Madrid by train? Stay in Atocha or Chamartín. Are you arriving by air? Being near a Cercanías station or Metro station cuts down on airport transfer time.
- Seasonality matters. Big events, like Pride in Chueca or the holiday lights on Gran Vía mean higher prices and larger crowds. If you are traveling to Madrid during a large event, book early and consider staying in a location a bit further from the festivities to save some money.
- Walkability vs. Taxis. Historic streets in Austrias and La Latina may be charming, but some of them are restricted to pedestrians-only. So while they are great for strolling, they may be less ideal for travelers looking to get around Madrid using taxis or rideshares.
- Accessibility checks. Madrid is an old city and while many of the most charming hotels are historic ones, you should confirm that elevators and step-free access is available if you require it.
- Value hunters, look outside of the core. Slightly outside of the tourist center, in neighborhoods like Chamberí or Ventas, you can often find better rates without sacrificing easy Metro access.
Orientation to Madrid's Neighborhoods
Are you a more visual person? Before you book your hotel or accomodations in Madrid, take a minute to check out this map. I have outlined Madrid's main neighborhoods, as discussed in this guide, and marked other popular attractions, landmarks, and transportation hubs to help you make your decision as to where to stay in Madrid straightforward.
Final Thoughts: Where to Stay in Madrid
There is not one perfect neighborhood, so where to stay in Madrid comes down to matching your travel style to the right base. If it is your first visit to the city, the central trio - Sol-Gran Vía, Austrias, and Paseo del Arte - puts the main sights and metro lines right at your feet. For those looking to be close to nightlife, I would recommend Malasaña or Chueca. And, if you are looking for shopping or a more residential feel, then Salamanca and Retiro are my top picks.
Where you stay in Madrid sets the tone for your time in the city, so a little planning goes a long way. For itineraries, restaurant suggestions, and more things to do in Madrid, check out our Madrid Travel Guide.
Need additional help deciding where to stay in Madrid? Or are torn between two hotels? We're happy to answer any questions you have, just drop them in the comments below!