The Most Budget-Friendly Hotels in Madrid

Madrid offers travellers affordable boutiques in the heart of the city
Madrid offers travellers affordable boutiques in the heart of the city | Courtesy of Room Mate Mario / Expedia
Photo of Jim Broadway
25 February 2021

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 Spanish capital offering something unique, here are the best budget places to stay.

Artrip Hotel

Budget Hotel
Map View
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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.

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Casual del Teatro Madrid

Boutique Hotel
Map View
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.

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Central Palace Madrid

Budget Hotel
Map View
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 guestrooms 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.

Artistic Bed and Breakfast

Bed and Breakfast, Budget Hotel
Map View
Artistic Bed and Breakfast
Courtesy of Artistic Bed and Breakfast / Expedia

On a pretty cobbled lane in the Literary Quarter, the Artistic Bed and Breakfast is on the third floor, with no lift – but it’s worth the climb up the stairs. Each of the six individually styled rooms features vibrant colour schemes and busy patterns modestly described as rustic Mediterranean. Two of them open to balconies overlooking the quiet street below. The owners provide an excellent and plentiful breakfast each morning, or there are many dining options within walking distance.

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Hostal Carmen

Budget Hotel
Map View
Hostal Carmen
Courtesy of Hostal Carmen / Booking.com

When booking accommodation in Spain, the first rule of thumb is not to confuse a hostal with a hostel – the Spanish 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.

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Mayerling Hotel

Budget Hotel, Bed and Breakfast
Map View
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.

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Hostal Gala

Budget Hotel, Hostel
Map View
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.

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  • One Shot Prado 23

    Budget Hotel
    Map View
    Hotel 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 graffitied 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.

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    Hostal Greco

    Budget Hotel
    Map View
    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.

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    Room Mate Mario

    Boutique Hotel, Budget Hotel, Chain Hotel
    Map View
    Room 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.

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    Hotel Freedom

    Budget Hotel
    Map View
    Hotel Freedom
    Courtesy of Hotel Freedom / Booking.com

    The bold, brightly coloured decor sets Hotel Freedom apart from other budget stays 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.

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

    These recommendations were updated on February 25, 2021 to keep your travel plans fresh.

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