Which Are the Best Budget-Friendly Hotels to Book in Madrid?

Madrid is home to a number of affordable boutique hotels, right in the heart of the city
Madrid is home to a number of affordable boutique hotels, right in the heart of the city | Courtesy of Room Mate Mario / Expedia
Jim Broadway

Travelling to Madrid on a budget has never been easier. There’s no shortage of reasonably priced accommodation, from stylish warehouse conversions to rooms near the Golden Triangle of Art. With each neighbourhood in the capital of Spain offering something unique, here are the best cheap hotels in Madrid.

1. Artrip Hotel

Budget Hotel

Double room at Artrip Hotel features wooden wall beams, a large bed and a modern work desk
Courtesy of Artrip Hotel / Hotels.com

The Artrip Hotel offers unassuming, wallet-friendly lodgings on a quiet tree-lined street in the Lavapiés district. The arty leanings suggested in the name refer to its location in the Golden Triangle of Art (formed by the Prado, the Thyssen-Bornemisza and Reina Sofia museums) and the fact that its lobby acts as a temporary gallery highlighting local artists. Smart modern rooms with top-quality beds and excellent soundproofing promote a good night’s sleep.

2. Casual del Teatro Madrid

Boutique Hotel

Double bed facing TV in room with cushioned chair, wooden wardrobe and bookshelf wallpaper at Casual del Teatro Madrid
Courtesy of Casual del Teatro Madrid / Expedia

Previously the Spanish Music Union headquarters, this rather flamboyant building has been reborn as a hotel with musical theatre as its muse. Each of the rooms is themed around a well-known production or is decorated with theatrical images and trimmings. There’s a small breakfast room, and the hotel provides mobile wifi devices for free data roaming. Aptly located in the Literary Quarter, the neighbourhood now heaves with traditional tapas bars and cafes.

3. Central Palace Madrid

Budget Hotel

Double bed in cream-toned room with two cushioned chairs and doors to a private balcony at Hostal Central Palace
© Central Palace Madrid

For a hotel at the more economical end of the market, the Central Palace Madrid certainly has an upscale setting – opposite the Palacio Real and overlooking Plaza de Oriente. Many of the guest rooms face the square, with views of the palace, and feature a style that borders on the palatial. Breakfast is served daily in the Café de Oriente’s opulent surrounds, which also has a palace-view terrace.

5. Hostal Carmen

Budget Hotel

Single bed and double bed in monochrome room with blue curtains and a wall-mounted lamp at Hostal Carmen
Courtesy of Hostal Carmen / Booking.com

When booking Spanish cheap hotels, the first rule of thumb is not to confuse a hostal with a hostel – the local hostal refers to cheaper hotels or guesthouses. Hostal El Carmen is ideal for those who want to stay in the city centre. It sits on the Gran Vía, right in front of the popular Callao Square, which is only a short walk from the busy shopping area of Calle de la Princesa. There are single, double and triple rooms; they’re minimalist and modern in style and feature sleek private bathrooms and flat-screen televisions. The hostal also has a rooftop bar, where you can enjoy breakfast or drinks overlooking the city.

6. Mayerling Hotel

Budget Hotel, Bed and Breakfast

Double bed in white-painted room with clothes storage space and tall windows at Hotel Mayerling
Courtesy of Mayerling Hotel / Expedia

Within a former textile warehouse, the Mayerling Hotel is a stylish, 22-bedroom property in the city centre. The chic, industrial-style interiors are reason enough to stay. Every single, double and triple room offers a private, modern bathroom and air conditioning for the hot summer months. For a small fee, you can enjoy a breakfast buffet in the canteen-style dining room. If you are looking for a bar popular with young Madrileños, try Sala Equis, a converted adult cinema a short stroll from the hotel. You’ll also find Puerta del Sol, Plaza Mayor and Gran Vía within walking distance.

7. Hostal Gala

Budget Hotel, Hostel

Double bed in monochrome room with drape curtains and wall-mounted lamps at Hostal Gala
Courtesy of Hostal Gala / Booking.com

With super-stylish (and super-cheap) rooms, Gala feels more like an upmarket boutique than a traditional hostal, with each room elegantly furnished with geometric wallpaper and sophisticated decor. It’s ideally located for visits to the Palacio Real and Plaza Mayor. Also, as it’s so close to all the major shopping streets and transport hubs, it’s the perfect place to soak up the bustling city atmosphere.

8. One Shot Prado 23

Budget Hotel

Double bed on wooden floor in white-painted room with two armchairs and a private balcony at One Shot Prado 23
Courtesy of Hotel One Shot Prado 23 / Booking.com

This boutique hotel sits inside a former antique shop in Barrio de las Letras, the famous literary neighbourhood, complete with art installations in the foyer and graffiti-covered walls in the underground car park. The rooms are sophisticatedly decorated, with minimal decor, hardwood floors and subtle pops of colour throughout. Soak up the history of Madrid by wandering through the grid of nearby streets.

9. Hostal Greco

Budget Hotel

Double bed in salmon-and-cream-painted room with two bedside tables with drawers at Hostal Greco
Courtesy of Hostal Greco / Booking.com

Greco is perfect if you’re looking for a traditional hostal in the city centre. The chandelier in the foyer and the marble decor hark back to times gone by, while the largely austere bedrooms with wooden furnishings are reminiscent of the classic no-frills Spanish hostal. And yet, in a nice juxtaposition, this traditional accommodation sits in one of the most liberal, lively neighbourhoods in Madrid – Chueca, the city’s LGBTQ village.

10. Room Mate Mario

Boutique Hotel, Budget Hotel, Chain Hotel

Double bed in white-painted Room with desk, chair, wall-mounted TV and tree mural at Mate Mario Hotel
Courtesy of Room Mate Mario / Booking.com

This hotel is part of the Room Mate group, which has established itself as a leading brand in affordable boutique hotels around the world; the Madrid site was the first. Room Mate Mario is just off the Plaza de Ópera (Plaza de Isabel II), so it’s ideal for those who want to stay in the heart of the city. Each room is exquisitely decorated with colourful murals, chessboard-style tiles in the bathrooms and Philippe Starck lamps. Night owls or revellers won’t miss out on the extensive breakfast buffet, as it’s served until noon each day.

11. Hotel Freedom

Budget Hotel

Double bed on tiled floor in monochrome ensuite room at Hotel Freedom
Courtesy of Hotel Freedom / Booking.com

The bold, brightly coloured decor sets this very Spanish cheap hotel apart from others in Madrid. Its 21 rooms typically feature an artful blend of single-tone pops of colour and black. It’s also a must for film buffs, as it’s just footsteps away from the century-old picture house, Cine Doré, which still screens new and classic movies in their original language.

Leon Beckenham and Jessica Jones contributed additional reporting to this article.

For more budget-friendly hotels in Madrid, check out our pick of the best budget hotels in Madrid.

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