One of the best places to stay in Madrid is near the city's historic and central Plaza Mayor. There are many perks to the area around this 16th-century square, including beautiful architecture, plenty of shops and eateries, and regular events and activities. You'll be within walking distance to nearly all the main city sites and find plenty of accommodation options that fit any budget.

Gran Hotel Inglés

Beautiful rooms in Madrid's oldest luxury hotel (Photo courtesy of Gran Hotel Inglés)

Just a 10-minute walk from Plaza Mayor, Gran Hotel Inglés offers comfort and history as the first luxury accommodation in Madrid, opening in 1886 on one of the city's first streets with electricity. Enjoy the Art Deco ambience in the lobby, with a cocktail and sherry bar designed by a Michelin-star chef, plus a beautiful breakfast buffet and afternoon tea service. The on-site restaurant, Casa Lobo, features a gourmet tapas menu and puts a spin on regional classics. 

Choose from rooms and suites, all featuring decor styled by a New York design firm. Wood floors, iron light fixtures, and colorful art offer a sense of playful sophistication. Grab a suite if you'd like to add a seating area, desk, free-standing bathtub, or private terrace with an outdoor plunge pool. If you're looking for extra space, the hotel's royal suite is the largest hotel room available in the entirety of Madrid's historic city center.

The hotel describes itself as "hidden in Madrid," and we agree. Tucked away on a quiet side street of the romantic (and very historic) Literary Quarter, you get a central location without all the noise. This neighborhood is pedestrian-friendly and ideal for a tapear (tapas walk). You can also walk to many of the city's other sites, including El Retiro Park, the Prado Museum, Puerta del Sol, and the Royal Palace. Learn more

Pestana Plaza Mayor Madrid

MID-RANGE

Rooms right on Plaza Mayor (Photo courtesy of Pestana Plaza Mayor Madrid)

Yes, you can stay directly on Plaza Mayor—it's an option, thanks to Pestana Plaza Mayor Madrid, which makes up part of the famous square's perimeter. Unsurprisingly, the views of the city's most famous square are incredible. You can enjoy them from your room (if you request one with plaza views), the large library lounge, the outdoor terrace on the square, or the rooftop terrace.

Even the standard rooms feel bright, colorful, and plush, though the bathrooms are small, with a sink inside the bedroom. We recommend a slight upgrade to a superior room or higher category for a bit more space. Suites add nice perks like soaking tubs, sofas, and exposed brick walls. 

There's a lot to keep you busy at Pestana Plaza Mayor. Enjoy your breakfast in the airy inner courtyard, which feels more like a garden terrace. Then head to the spa with its indoor pool, splashing among preserved arches and buttresses. If you prefer to swim outside, there's also a rooftop pool and lounge overlooking the historic skyline. When hungry, grab a meal at the on-site restaurant or lobby bar. Learn more

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CoolRooms Palacio de Atocha

MID-RANGE

Relax on the outdoor terrace with a pool (Photo courtesy of CoolRooms Palacio de Atocha)

CoolRooms Palacio de Atocha is aptly named as it's a pretty relaxed and hip upgrade to a 19th-century palace house, a quick seven-minute walk from Plaza Mayor. Enjoy some charming original elements, such as the main iron staircase and decorative ceiling. The location adds to the coolness, as you'll be just down the street from Antón Martín Market, a great place to try a few authentic bites and watch locals truly do their daily shopping. You'll also be within walking distance of numerous other sites, like the Literary Quarter, Royal Palace, Catedral de la Almudena, and Puerta del Sol.

Choose from six room types, all with a bright, airy, and minimalist feel, plus spacious bathrooms with stylish tiling. You'll enjoy light-wood flooring, walls, vintage paneling, lighting, and floor-to-ceiling windows. Upgrade to a suite if you want to feel like you live here, as they're huge! Some suites offer soaking tubs, living rooms, separate bedrooms, and private terraces.

The on-site restaurant serves breakfast in the dining room or on the beautiful outdoor covered patio. The inner courtyard also features an outdoor pool and lounge with a fountain and lots of plants. Sneak into the cozy lounge bar for a nightcap or hang out in the open-air lounge across from the reception. Learn more

Petit Palace Posada del Peine
 
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The oldest boutique hotel in Madrid (Photo courtesy of Petit Palace Posada del Peine)

Petite Palace Posada del Peine offers an affordable option nearly on Plaza Mayor, as you can see one of the square's arched entrances right in front of you as you leave the hotel. Plus, the property is 400 years old and the city's oldest boutique hotel. Enjoy being surrounded by buzzy cafés, tapas bars, and shops in a very energetic part of Madrid. You'll also be within walking distance of sites like Puerta del Sol, the Royal Palace, and Gran Vía.

As a Petit Palace property, you'll find a similar aesthetic to the brand's other locations, with small, simple rooms that are clean and comfy. Double and family rooms include desks; some are split-level or have balconies with views of the bustling street below. Family rooms have bunk beds and can sleep up to six people, but those rooms kind of give off a hostel-room vibe. Still, they're a great option for families or small groups.

The hotel serves a pretty decent breakfast buffet in the dining area, offering a historic vibe with exposed brick walls. Besides the usual selection of cold cuts, cheese, fruits, and pastries, you can also create your own granola or salad bowl. The hotel offers bike rentals if you'd like to cycle while exploring the city. Learn more

Hotel Francisco I Boutique
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Rooms with historical views (Photo courtesy of Hotel Francisco I Boutique)

As one of the best standard hotels in Madrid, you'll find the stylish Hotel Francisco I on Calle del Arenal (a popular pedestrian street), two minutes from Plaza Mayor. Rooms are bright and colorful, with decorative nods to the building's historical past, including exposed brick, wood-beamed ceilings, arched windows, and iron balconies. Book a suite or family room for a bit more space and seating areas, or choose a deluxe top-floor room for a private terrace.

You'll enjoy a daily breakfast buffet downstairs in the beautiful inner courtyard, though you can always opt for "breakfast in bed" with a morning delivery to your room. Relax in the spacious bar/lounge on the ground floor, or find one of the other little lounges hidden in the corners of each floor. If you'd like to sleep in, you can check out as late as 2:00 pm, if available. 

Almost directly between the Royal Palace and Puerta del Sol, the hotel is in a prime location in the center of it all the moment you walk out of the hotel. Besides being just minutes from Plaza Mayor, you can also walk to the Royal Palace, Puerta del Sol, and Gran Vía—the city's biggest attractions. Learn more