Rising from the Spanish plains, almost at the dead center of the Iberian Peninsula, Madrid is sprawling. Home to over six million people, this is the second largest city in Europe. In turn, it also has the second largest GDP of any European city. Madrid is Spain’s financial heart.

Like any capital city worth its weight, Madrid is a fast moving, cosmopolitan hub; multicultural, diverse and progressive. But no matter how fast Madrid moves, it never forgets its roots. Whether your idea of an ideal city break is indulging in some high-end retail therapy or browsing museums, partying hard or chatting over tapas, Madrid always delivers.

With Spain’s busiest airport on its doorstep, getting to Madrid is easy. Hot summers and cool winters, with no shortage of suitable activities for all seasons mean there’s never a bad time to visit Madrid. In reality, there’s only one burning question left to ask: where to stay in Madrid?

In such a large city, there’s plenty of good answers to that question. To help you plan your perfect Madrid getaway, we’ve brought together some our favorite neighborhoods.

Where to Stay in Madrid for the First Time

Malasana

In the years following Franco’s fall from power, Spain underwent some significant cultural and political changes. One of the most significant was La Movida. Beginning in 1980, La Movida spelt the birth of a new hipster counterculture; Spain’s answer to the Swinging Sixties in the UK if you will. In Madrid, Malasana was the epicentre of this movement.

Forty-five years on, Malasana is still hip, trendy and alternative. This is the kind of neighborhood where boujee coffee shops and natural wine bars share the streets with punk rock bars. Then there’s the street art, flamenco shows and Liria Palace, home to one of Madrid’s most eclectic classic art collections.

All that aside, there’s another reason Malasana should be on your radar as where to stay in Madrid on your first visit. It’s location couldn’t be better.

Best Hotels in Malasana

When it comes to choosing where to stay in Madrid, Malasana’s comparative lack of choice to Puerta del Sol or Chueca might put you off. Don’t let it. The reason Malasana makes the cut as one of the best areas to stay for first time visitors is exactly that. You won’t be sharing streets with throngs of tourists. Plus, the quality of hotels on offer is next level.

Our top Malasana recommendation on where to stay in Madrid is Akeah Hotel Gran Via. The name is slightly deceptive. It’s on San Bernardo, but Gran Via is a five minute walk away. Noviciado Metro is right opposite, making it super easy to reach all of Madrid’s main sights. The rooms are modern and stylish, but it’s the gorgeous outdoor pool and roof terrace which make Akeah our favorite.

If you want to be closer still to Gran Via, Hotel Sterling is an excellent choice. It’s well worth upgrading to a balcony view. Hotel Life Gran Via is a great option if escaping the hustle and bustle is an important factor when choosing where to stay in Madrid. Tucked down a quiet side street, you’ll be far away from late night revellers, but close enough should you wish to become one yourself. For budget savvy travelers, shiny, capsule hotel Urban Inn should be on your radar.

Sol

The capital’s beating heart, Sol is where to stay in Madrid for the most authentic experience. Busy at every hour of the day, Sol is well connected to every corner of the city. That said, unless you’re staying for weeks, you’ll probably struggle to find time to venture far. The simple fact is, all of Madrid’s most famous sights are in, or within walking distance, of Sol.

Take a tour of the Royal Palace, marvel at Plaza Mayor and uncover secrets on a guided walk. Get your fill of tapas, watch street performers at Puerta del Sol and set your eyes on masterpieces at San Fernando Fine Art Academy. When darkness falls, Sol doesn’t sleep. If this is your choice of where to stay in Madrid, plan to make a night of it. Sol’s nightlife is rivalled by none.

Best Hotels in Sol

The area surrounding Sol Metro has so many options we could write an entire article on where to stay in Sol and not even touch the surface. What makes all of our favorite Sol hotels worthy contenders in choosing where to stay in Madrid is that everyone of them has a prime location.

Of them all, Hotel Europa is our number one pick. The rooms are modern, yet not sparse, and their size is more country house hotel than city center hotspot. Their on-site bar and restaurant, Café Europe, does some of the best cocktails in Madrid.

If finding a traditional, old-school hotel is your priority when choosing where to stay in Madrid, look no further than Hostal Victoria II. Quite possibly the best located of all, it’s right on top of Sol station on Puerta del Sol plaza. The rooms, although on the smaller side, are decked out with classic, warm tones with retro furniture.

Travel Tip: It’s easy to confuse hostals with hostels. In Spain (and much of Latin America), hostals are budget-friendly family-owned hotels, generally attached to a bar or restaurant. Unlike hostels, they offer private rooms.

Luthia Puerta del Sol is ideal for those who like the minimalist touch. Opt for a room with a Juliet balcony for views over the plaza. If you’re searching for somewhere to stay without a city center price tag, Hostal El Pilar is the place to go.

Where to Stay in Madrid

Chueca

Bordered by Malasana to the west and Sol to the south, Chueca’s location makes it worthy of consideration alone. Dubbed the “neighborhood of love” by locals, Chueca is often said to be Madrid’s most progressive district. And in a city which moves as quickly as Madrid, that’s quite the accolade.

Progressive as Chueca may be, it’s also home to some of the city’s oldest buildings and historical hotspots. When you can draw yourself away from the fashion boutiques and street cafés, be sure to drop in to the Museo del Romanticismo.

Best Hotels in Chueca

The best of Chueca’s hotels are concentrated just north of Gran Via. Just like in Malasana and Sol, whichever one you pick when choosing where to stay in Madrid, you’ll be in an enviable location for exploring the city.

Our all time favorite here is Room Mate Oscar. A room here certainly comes at a premium, but for good reason. Sophisticated, swanky and stylish, the rooms are good, but the rooftop terrace and poolside bar are the real draw.

Another of our Chueca favorites, all-suite Woohoo Rooms is an urban oasis. Tucked away, yet only five minutes from Gran Via, go for a balcony suite overlooking the garden. The ultimate Chueca bargain is Habitaciones Figueroa. Directly behind Chueca Metro, the rooms are spacious and all guests have access to a communal kitchenette.

Retiro

Whenever I’m considering where to stay in Madrid, Retiro is always my first choice. Central, yet quiet (capital city quiet, that is), Retiro is all about its park of the same name. A UNESCO World Heritage Site, combined with grand Paseo del Prado, El Retiro Park covers 350 acres.

Aside from its beauty, the park played a pivotal role in making Madrid the city it is today. Originally the site of a Jeronimite monastery, when the monastery constructed a new church, the Spanish royal family built a retreat within it. King Phillip II liked it so much that, in 1561, he moved the royal court to Madrid, rendering it capital for the first time.

The park aside, Retiro is home to many of Madrid’s top museums. The most iconic, the Prado, is home to over 8,000 exhibits. The National Museum of Anthropology is a must for history lovers. Another feather in Retiro’s cap when it comes to choosing where to stay in Madrid is just how close it is to everywhere else. Gran Via starts just to the north-west of the park, Sol is directly behind Paseo del Prado and if you want to escape the city, Atocha Station is within walking distance.

Best Hotels in Retiro

With vast swathes of Retiro being given over to Madrid’s largest park, it’s probably no surprise that there are fewer hotels here than the areas we’ve discussed so far. Just as in Malasana, this is great if you want to be away from the crowds. At night, once picture-hungry travelers and sunbathers have left the park, you’ll have the streets of Retiro to yourselves.

One of Petit Palace’s two Retiro hotels, which are almost next door to each other are my go-to’s; Lealtad Plaza and Savoy Alfonso XII. If you want a park view, Savoy Alfonso is the one to pick. Lealtad Plaza, the slightly lower-cost option, is perfect for enjoying some personal space.

At the southern edge of the park, Agumar Hotel is ideally situated for Atocha Station. The rooms are comfortable, if not the most inspiring, and their Mediterranean restaurant- Las Arenas- is exceptional. As great an area as Retiro is to stay in Madrid, it’s not the most budget friendly. The exception to that rule is AYZ Juan de Mena.

Lavapies

You’d be right to wonder why we’ve included Lavapies when considering where to stay in Madrid. At first glance, there isn’t all that much to do here. The truth is, there doesn’t need to be. Within touching distance of Sol, you can easily walk to all the big name attractions.

What makes Lavapies so special is how real it is. Home to the Reina Sofia, a world-class art museum showcasing the works of Picasso, Dali and Miro and street art aplenty, Lavapies is quite possibly Madrid’s most vibrant and multicultural district.

Best Hotels in Lavapies

Sometimes, picking where to stay in Madrid is about more than the area. It’s about the hotel itself. In Lavapies’ case, most hotels fall into that category. Artrip Hotel, a few minutes south of Lavapies Metro is charm personified. From the elegantly whitewashed lobby to the exposed brick hallways, the Art Deco design is one so mismatched, it just works.

For something a little more modern, look no further than Bypillow Crosstown. The rooms, beyond spacious, are a blend of Scandinavian sophistication and Mediterranean warmth. If you settle on booking a room at Bypillow, be sure to get breakfast from Pum Pum Bakery, right across the street.

Salamanca

A stone’s throw from El Retiro Park, Salamanca is our pick of where to stay in Madrid for a luxury trip. It’s grand and stylish, but never pretentious. Quiet, yet within easy reach of the hubbub of Chueca and Sol, one of Salamanca’s many draws is how safe it feels (and is).

Take a tour of Madrid’s largest bullring, Las Ventas, before diving into Spanish history at the National Archaeological Museum. Once you’ve seen the sights, hit up the designer stores before grabbing dinner at Bel Mondo. There’s a fine line between tacky and quirky and it’s hard to say which side of that line Bel Mondo sits on; regardless, it’s bizarre enough to warrant an evening away from tapas.

Best Hotels in Salamanca

Madrid’s answer to Mayfair or the Upper East Side, if luxury hotels are your thing, you’ll feel at home in Salamanca. For that ultimate luxury experience, the Wellington Hotel is our top pick. Even the most basic rooms here are grand and expansive, though it’s well worth upgrading to a terrace or penthouse room. When it comes to dining, their Michelin-starred Japanese fusion spot Ricardo Sanz is where it’s at. Between the food and the spa, it won’t be easy to drag yourself out to explore Madrid.

If you want to push the boat out even further, Bless Hotel is quite possibly the fanciest hotel in the city. Limehouse Madrid Calle en Don Ramon de la Cruz, and quite a name it is, is ideal if you want a little more space and privacy. This upscale aparthotel boasts modern rooms, a relaxing sun terrace and a quiet location a short walk from Lista Metro.

For those seeking a budget hotel, Salamanca probably won’t be your first shout when considering where to stay in Madrid. That said, Apartmentos Recoletos on the border of Salamanca and Chueca is an absolute bargain.