The Best Budget Hostels to Book in Madrid

The Hat blurs the lines between boutique and backpacking
The Hat blurs the lines between boutique and backpacking | Courtesy of The Hat /
Mark Nayler

Receiving almost 2,800 hours of sunshine every year, Madrid is one of Europe’s sunniest cities – you’re almost guaranteed blue skies whenever you visit. But what if you want to see it affordably? From city centre hostels in restored mansions, to student-style digs in the suburbs and activity-orientated bases in which to make new friends, here’s our pick of where to stay if you’re travelling to the Spanish capital on a budget – bookable on Culture Trip.

1. Cats Hostel


Cat’s Hostel
Courtesy of Cat’s Hostel /
Unusually for a budget hostel, Cats’ Sol branch has its own nightclub – a brick-vaulted cave that serves as a lounge by day and hosts concerts, flamenco shows and parties by night. Other communal spaces include an Andalusian-style 17th-century courtyard, a neon-lit bar and a space-age relaxation room with a big screen, board games and couches. Dorms here sleep from two to 12 people, and breakfast is included. Cats also have a base in the hipster neighbourhood of Lavapiés, should you wish to visit there.

2. The Hat

Boutique Hotel, Budget Hotel, Hostel, Hotel

The Hat
Courtesy of The Hat /

Blurring the line between backpacker’s base and boutique hotel, the Hat offers private and shared accommodation in whitewashed rooms with pine furniture, black columns and vintage travellers’ chests. Meet other guests in a ground-floor bar with brick walls and hanging bulbs, or on the eclectically decorated roof terrace with a disused watermill. The hostel’s situated just off Plaza Mayor – one of Madrid’s oldest squares – a three-minute walk from Gran Vía and Sol.

3. TOC Hostel Madrid


TOC Hostel Madrid
Courtesy of TOC Hostel Madrid /

TOC Hostel occupies a 19th-century townhouse that was once an aristocratic residence, in which ceiling frescos and a creaking wooden staircase have been preserved. Situated a few minutes’ walk from the Royal Palace, the private doubles and mixed or female-only dorms feature a light, cheerful aesthetic, and some have juliet balconies. Breakfast, snacks and cocktails are served in a bar with a pool table, and a free walking tour is available on request.

5. Safestay Madrid

Hostel, Hotel

Safestay Madrid
Courtesy of Safestay Madrid /

Safestay offers group activities and a speakeasy bar with a rooftop terrace in Salamanca, Madrid’s most exclusive neighbourhood. Get involved in pizza and games nights and communal dinners before exploring the Spanish capital with free walking tours. Pristine white rooms feature double beds or bunks with lights and sockets, and many have small balconies with views over the square opposite. Breakfast is available for a fee, while the bar offers affordable burgers, salads and pasta dishes.

6. OK Hostel


OK Hostel
Courtesy of OK Hostel /

The back wall of this hostel’s low-lit lounge bears an enormous mural depicting everything from former Real Madrid star, Cristiano Ronaldo, to can-canning pigs with legs of cured jamon. Ideally placed for exploring the bohemian barrio La Latina, other social spaces include a kitchen and a lounge with retro leather sofas, a flatscreen TV and a pool table. Stay in double rooms or dorms – mixed and female-only – featuring custom-made bunks with privacy curtains. El Rastro, Madrid’s largest open-air flea market, is just a five-minute walk away.

7. Mola Hostel


Mola Hostel
Courtesy of Mola Hostel / Expedia

Offering everything from day trips to Toledo and Segovia to tours of the Real Madrid stadium, Mola’s concierge service wouldn’t be out of place in a four-star hotel. Compact dorms sleep between four and 10 travellers, and all have their own bathrooms. Amenities include a breakfast of cold cuts, fruit, pastries and tortilla, while the cavernous bar – with mismatched metal chairs, graffiti-style wall art and a ceiling of exposed silver and black pipes – is a great place to spend an evening.

Looking for more great places to stay in Madrid? Check out our rundown of the best hostels in the Malasaña and Chueca neighbourhoods or the top cheap hotels in the capital – now all bookable with Culture Trip. Start building your itinerary by taking a look at the trendiest bars in town and the best historic restaurants, before discovering the best places to go swimming in Madrid.

This is a rewrite of an article originally by Jessica Jones.

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