A neighbourhood guide to the best areas to stay in Madrid, as chosen by our resident expert, including the best hotels on Gran Vía and Paseo del Prado, and in neighbourhoods including Chueca, Salamanca and the Barrio de las Letras.
Gran Vía
The Gran Vía is the main avenue through the centre of the city, cutting through from Plaza de Cibeles to Plaza de España. Always streaming with people and traffic, the street is the very soul of Madrid but may be a bit much for some people. That said, staying here is dead handy for shopping and eating out as you can walk to several neighbourhoods with differing characters in five to 10 minutes, including Chueca, Malasaña and Santa Ana.
Where to stay
Vincci The Mint Madrid, Spain
8Telegraph expert rating
Fashionable and fun, the four-star Vincci The Mint is the sort of hotel that forms part of your city break, rather than just being somewhere to sleep. With zingy design, healthy food, naughty cocktails and a spectacular roof terrace, it is totally on trend and fits right into the peppy Madrid vibe. Read expert review. From £76per night. Check availability. Rates provided by Booking.com.
Hotel Indigo Madrid - Gran Via Madrid, Spain
8Telegraph expert rating
If you could do with a bit of the zany, zingy energy of an Almodóvar film, you will love the jewel colours and trendy vibe at the Indigo, which is staggering distance from Madrid’s hippest bars. From spring to autumn, take your designer swimwear to hang out with the cool crowd by the rooftop pool. Read expert review. From £73per night. Check availability. Rates provided by Booking.com.
The Principal Madrid Madrid, Spain
8Telegraph expert rating
The Principal is popular with a media and fashion crowd, as well as anyone who wants to be able to walk everywhere. With comfortable rooms and a calm colour scheme, it is a handy haven in the heart of the city and the chic roof terrace is one of the most coveted spots in Madrid for a drink in summer. Read expert review. From £171per night. Check availability. Rates provided by Booking.com.
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Plaza de España
This vast square forms the axis between the Gran Vía and the western edge of the centre. Staying here, you are near the major sights and shops but can also delve into a less touristy side of the city. You can walk to the Royal Palace and the soothing Oeste Park in less than 10 minutes, or stroll up the hill into the arty Conde Duque area, where there is a massive cultural centre and some great tapas bars. Also nearby is the Argüelles neighbourhood, with high-street shops including El Corte Inglés department store.
Where to stay
Dear Hotel Madrid Madrid, Spain
8Telegraph expert rating
The four-star Dear is a new designer hotel in a handy downtown location in Madrid. There are a lot of luxe touches in the stylish, comfortable rooms, some of which have sweeping views of the city. Read expert review. From £86per night. Check availability. Rates provided by Booking.com.
Meliá Madrid Princesa Madrid, Spain
8Telegraph expert rating
The five-star Meliá Madrid Princesa is a well-established hotel that is very much part of the fabric of the city. With comfortable, modern rooms, superb service and a location that is handy but not manically busy, it suits frequent travellers who need a hotel with guaranteed standards throughout. Read expert review. From £35per night. Check availability. Rates provided by Booking.com.
Casón del Tormes Madrid, Spain
7Telegraph expert rating
The classically-decorated, three-star Casón del Tormes is renowned for its warm atmosphere and, while not super luxurious, rooms are comfortable and rates are usually very reasonable. It is located in a central part of Madrid, within walking distance of shops and sights. Read expert review. From £55per night. Check availability. Rates provided by Booking.com.
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Madrid de Los Austrias
The oldest area of the city, around the Plaza Mayor, is characterised by its slate-spired buildings built during the reign of the Habsburg monarchs in the 16th and 17th centuries. Walking around the evocative lanes of the neighbourhood – where there is a wealth of traditional and modern bars, restaurants and cafés – is one of the best experiences in the city. The Royal Palace, San Miguel deli market, the shops around Puerta del Sol and the Rastro flea market are a few minutes’ away on foot.
Where to stay
La Posada del Dragón Madrid, Spain
8Telegraph expert rating
This inn in the oldest and most atmospheric part of Madrid is now a chic three-star hotel where contemporary style blends smoothly with traditional architecture. A great on-site tapas bar and an informal vibe make La Posada del Dragón an attractive option if you like places with distinctive character. Read expert review. From £51per night. Check availability. Rates provided by Booking.com.
Posada del León de Oro Madrid, Spain
8Telegraph expert rating
A traditional inn set around a courtyard is now a smart four-star boutique hotel that is full of character and has a relaxed vibe. With romantic rooms at reasonable rates and a buzzing tapas bar and restaurant, Posada del León de Oro is a really special place to stay and could only exist in Madrid. Read expert review. From £61per night. Check availability. Rates provided by Booking.com.
The Hat Madrid, Spain
8Telegraph expert rating
The Hat hikes up the standard of Madrid hostels with the style of a boutique hotel and lots of good ideas for a comfortable, fun stay without paying silly prices. Sights, shops and restaurants are on the doorstep and there is a groovy bar up on the roof. Unsurprisingly, it attracts all ages. Read expert review. From £15per night. Check availability. Rates provided by Booking.com.
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Chueca and Salesas
The downtown grid of narrow streets – the gay hub of Madrid – is packed with bars and boutiques and is lively both day and night. The Gran Vía is just down the road and it is a pleasant stroll through the centre to the Plaza Mayor or the museums along the Paseo del Prado. Fernando VI and Barquillo streets form the border between Chueca and the more upscale Salesas area. Staying here, you will feel part of the fashionable crowd without even trying.
Where to stay
Only You Boutique Hotel Madrid Madrid, Spain
8Telegraph expert rating
Get over the slightly incongruous name of this beautiful boutique hotel and you’ll find effortless interior design, stylish bedrooms and a great location in the thumping barrio of Chueca. Read expert review. From £152per night. Check availability. Rates provided by Booking.com.
URSO Hotel & Spa Madrid, Spain
8Telegraph expert rating
The Urso is a smart five-star boutique hotel in a chic area of Madrid, with lovely original features, a stylish Natura Bissé spa, and light and bright rooms, near the trendy Malasaña and Chueca districts. It offers a great dining experience too, with a rota of visiting top chefs. Read expert review. From £139per night. Check availability. Rates provided by Booking.com.
Room Mate Oscar Madrid, Spain
8Telegraph expert rating
Room Mate Oscar has managed to pull off the tricky feat of consistently being one of the coolest hotels in Madrid since it opened. With peppy design, a rooftop pool, unpretentious staff, a fun vibe and a brilliant location, what’s not to like? Rates are usually pretty reasonable too. Read expert review. From £83per nigh. Check availability. Rates provided by Booking.com.
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Barrio de las Letras
Plaza Santa Ana is the hub of the Barrio de Las Letras – the literary quarter – where Madrid’s first theatres sprang up in courtyards more than four centuries ago. It still has a bit of a bohemian vibe and is packed with bars, restaurants and small independent shops. This is a great area for your first time in the city, as you are in a lively, traditional neighbourhood and can walk to the major museums and the shops around Puerta del Sol in less than 10 minutes.
Where to stay
ME Madrid Reina Victoria Madrid, Spain
8Telegraph expert rating
The ME Madrid is a buzzy, smart hotel in an excellent location with a bit of fun thrown into the mix. Handily located in downtown Madrid, the purple-dominated interiors have a distinctly disco feel. Bedrooms are luxurious with sumptuous beds (duck feather pillows), and the hip bar has a DJ. Read expert review. From £136per night. Check availability. Rates provided by Booking.com.
Casual Madrid del Teatro Madrid, Spain
7Telegraph expert rating
Ever fancied sleeping in a theatre? At the Casual Madrid del Teatro you can – almost – as the décor is inspired by musicals and plays. This is a fun, no-frills option right in the city centre that would suit families or groups of friends who don’t want to blow the budget on accommodation. Read expert review. From £47per night. Check availability. Rates provided by Booking.com.
Room Mate Alicia Madrid, Spain
8Telegraph expert rating
Located on a buzzing square in the bohemian neighbourhood of Barrio de las Letras is the stylish Room Mate Alicia. One of Spain's most coveted interior designers, Pascua Ortega, transformed the 20th-century industrial building into a light-filled space, which is now a favourite among fashion and media types. Read expert review.From £52per night .Check availability. Rates provided by Booking.com.
Paseo del Prado
If you plan to spend your days in the major museums, it is not a bad idea to stay on or around the Paseo del Prado, so you can nip back easily to rest your feet. There’s Centro Centro at the top end on Plaza de Cibeles, then the Thyssen-Bornemisza, Prado and CaixaForum, with the Reina Sofia at the Atocha end. You might want to take in the Naval and Decorative Arts museums too. Staying here, you can also escape into the nearby Retiro Park and dive into the Barrio de Las Letras to explore the tapas bars in the evening.
Where to stay
Hotel Ritz Madrid Madrid, Spain
9Telegraph expert rating
Expect classic luxury at every turn at Hotel Ritz Madrid. Sumptuous carpets made down the road at the Royal Tapestry Factory ensure that every step you take is in cushioned comfort. Read expert review. From £252per night. Check availability. Rates provided by Booking.com.
Westin Palace Madrid, Spain
9Telegraph expert rating
Madrid’s Westin Palace brings traditional glamour and sumptuous comfort to the heart of the Spanish capital. Overlooking the Plaza de Neptuno, it offers easy access to the Prado and Thyssen-Bornemisza museums. Huge and ornate, with 467 spacious rooms and suites, marble bathrooms, deep carpets and comfy, regal beds. Read expert review. From £199per night. Check availability. Rates provided by Booking.com.
Only You Hotel Atocha, Madrid, Spain
9Telegraph expert rating
Dazzling design and a clubby vibe combine to make the Only YOU Atocha the new fashionable place to stay in Madrid. Smart rooms, great food and a sense of space create a contemporary luxe environment where guests might just forget to leave the hotel all weekend. Read expert review. From £114per night. Check availability .Rates provided by Booking.com.
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Salamanca
The grid of tree-lined streets and broad avenues of the elegant Salamanca district contain the city’s smartest shops and quite a few of its top restaurants. While Goya is more high street, Serrano, Ortega y Gasset, Lagasca and Claudio Coello are distinctly high end. Regular visitors to Madrid often choose this area for the discreet luxe vibe of the hotels plus easy access to the airport.
Where to stay
TÓTEM Madrid Madrid, Spain
8Telegraph expert rating
Tótem exudes discreet urban chic, following the example of the Urso, its sister hotel in Madrid. The elegant building occupies one of the most upmarket corners in the city, with a decadent bar and laid-back restaurant, and looks set to become a favourite of well-heeled locals as well as Madrid regulars. Read expert review. From £117per night. Check availability. Rates provided by Booking.com.
Hotel Único Madrid Madrid, Spain
8Telegraph expert rating
Housed in an elegant 19th-century building, it is all about good design and great service with no daft gimmicks, which is a bit of a relief these days. With Ramon Freixa Madrid, one of the best restaurants in Spain, on the premises, the Único is a favourite for gourmet travellers. Read expert review. From £200per night. Check availability. Rates provided by Booking.com.
NH Collection Madrid Colón Madrid, Spain
8Telegraph expert rating
A rooftop pool and sundeck, elegant contemporary décor, a discreetly smart location near the best shops and easy airport access all add up to making the four-star NH Collection Colón a top choice for regular visitors to Madrid. Having the Platea gastronomic hub right next door is a big plus too. Read expert review. From £94per night. Check availability. Rates provided by Booking.com.
This article was written by Annie Bennett from The Telegraph and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.