Welcome to our guide to the 5 best luxury and boutique hotels in central Madrid, Spain!
Madrid lies in the center of the Iberian Peninsula and is the capital and largest city of Spain. It is a modern metropolitan city and an industrial center of Spain, and it is home to the Spanish royal family as well as the Spanish government. Madrid is known for its lively atmosphere, rich history, and dynamic cultural scene. Travelers flock to the city not only for its iconic landmarks but also to experience its blend of old-world charm and modern lifestyle.
Choosing where to stay in Madrid can be challenging, as it depends on your budget, how you plan to spend your time, and your travel style. As our blog name suggests, we love luxury, so this greatly influences our travel choices. We have visited Madrid many times and often found ourselves returning to the same hotels that we loved. In this post, we will review our favorite 5 luxury and boutique hotels in central Madrid, sharing our honest opinions on each. As a bonus, we’ve also included a budget-friendly boutique hotel option that we truly enjoyed.
We picked hotels that are located in central Madrid, and from our experience, this is the best and most convenient area to stay and conveniently explore the city. We will review the exact neighborhoods each hotel is located, to help you choose the best option for you.
Note that all photography on this guide (and throughout our website) was shot by me (Alina) and if you wish to purchase any, some are available at my Etsy shop.
For more Itineraries and travel guides, visit our Destinations page.
Note: Some of the links below contain affiliate links. If you click through and make a purchase, we earn a small commission at no extra cost to you. This will help us provide more free content for you. Thank you!
Map of our 5 Best Luxury and Boutique Hotels in Central Madrid
We will begin our guide to the 5 best luxury and boutique hotels in Central Madrid with a review of Palacio Neighborhood, where the first of our 5 best hotels in Central Madrid, VP Plaza Espana Design Hotel, is located.
Palacio Neighborhood
Palacio, located in the historic heart of Madrid, is renowned for its grand architecture, royal history, and charming plazas. This area gets its name from the Royal Palace of Madrid, an impressive Baroque structure that is one of the city’s main attractions, featuring breathtaking interiors. Close by, the Almudena Cathedral showcases a blend of Gothic and contemporary styles, adding a modern element to the city’s historic landscape.
Palacio is quieter and more residential compared to bustling neighborhoods like Sol. It has a stately and elegant ambiance, with beautiful plazas, like Plaza de Oriente and Plaza de España are popular spots for relaxation. This is also where our recommended hotel can be found. This area is ideal for travelers interested in history, architecture, and a more relaxed experience while still being close to Madrid’s attractions.
VP Plaza España Design
The first of our 5 best luxury and boutique hotels in central Madrid is VP Plaza España Design. It is a luxurious 5-star Hotel located in Plaza de España and a few steps away from the central Gran via street and the Royal Palace of Madrid. With easy access to public transport and metro lines 10 and 3, you can explore the city’s attractions easily.
The hotel itself is beautifully designed with original art in its halls. We stayed at the deluxe room which was absolutely beautiful, spacious, well-appointed, quiet, and had great views over the bustling Plaza de España. The bathroom was huge and modern.
A huge bonus that VP Plaza España Design offers, is an amazing wellness spa with an indoor pool which we used several times and enjoyed very much. Also, we loved the rooftop bar, Ginkgo Sky Bar, had offered great views over the city. The breakfast was abundant and tasty.
Sol Neighborhood
Sol is the very center of Madrid, buzzing with energy and famous for its lively atmosphere. Puerta del Sol is not only a main square but also Madrid’s “Kilometer Zero,” the point from which all distances in Spain are measured. Sol Neighborhood is packed with iconic landmarks, such as the Bear and the Strawberry Tree statue (Madrid’s symbol), Calle Preciados for shopping, and the Plaza Mayor with its lively arcades and outdoor cafés, and it is where our recommended hotel is located.
The area is a great starting point for exploring central Madrid, with a variety of attractions, shops, and restaurants all close by. However, being the most central area does come with its downsides. The streets are always bustling with both tourists and locals, in addition to street performers and vendors. This lively environment is perfect for those who enjoy being right near the action.
Pestana Plaza Mayor
The second of our 5 best luxury and boutique hotels in central Madrid is Pestana Plaza Mayor. It is a modern 4-star hotel located right in the historic center of the capital, in Madrid’s most iconic square, Plaza Mayor. With all major attractions within a short walk, you can’t beat this location. The hotel is nestled in the historic building surrounding the plaza.
We stayed at the Superior Plaza Mayor Room, the rooms are not the biggest, but they are well-ordained and modern. The main reason for choosing this room was without doubt the amazing Plaza Mayor views from the balcony. The soundproof windows are doing a phenomenal job so you don’t have to worry about the noise coming from the plaza. Watch our video below and hear the difference with the doors closed.
The hotel offers a rooftop bar and pool with gorgeous views and a fabulous spa with an indoor pool and gym and the breakfast was just great. We visited during Christmas so unfortunately didn’t have the chance to use the pool. It is the best hotel to stay in during the Plaza Mayor Christmas Market.
Hotel Regina Madrid
Our third choice of 5 best luxury and boutique hotels in central Madrid is Hotel Regina Madrid. It is a 4-star hotel and it is a real gem. Its central location is a significant advantage, as it is just a few meters away from Puerta del Sol and Gran Vía. Many local attractions, bars, and restaurants are within walking distance, and the hotel offers easy access to public transportation, with Sevilla Station conveniently located right next to the hotel.
We stayed in a Double Room with a patio view. While it was on the smaller side, it was beautifully designed and luxurious. The bathroom was spacious, clean, and well-appointed. The breakfast buffet was exceptional, offering a wide variety of delicious options. Additionally, the staff was incredibly friendly and accommodating. One downside is that Hotel Regina does not have pool or spa facilities. However, there is a rooftop area where you can relax on comfortable chairs and enjoy some fresh air.
Cortes Neighborhood
The Cortes Neighborhood, also known as the Barrio de Las Letras (Literary Quarter), is named after its historic literary figures, such as Miguel de Cervantes and Lope de Vega, who once lived here. This charming, pedestrian-friendly area is known for its literary history and artistic vibe. Some of the cobblestone streets feature poetry inscribed on the ground, reflecting its literary heritage.
Generally quieter than the bustling Sol area, the Cortes Neighborhood remains close to Madrid’s main attractions, such as the famous Paseo del Prado, which includes the city’s “Golden Triangle of Art” (the Prado Museum, Reina Sofía, and Thyssen-Bornemisza Museum). The neighborhood attracts both tourists and locals with its vibrant mix of art and culture, along with lively bars and trendy cafés.
NH Collection Madrid Suecia
Fourth of our 5 best luxury and boutique hotels in central Madrid is NH Collection Madrid Suecia. It is a stylish 5-star hotel situated in the heart of Madrid, just steps away from Gran Via and Alcala Street, and only a short walk from Plaza de Cibeles and Parque de Retiro. While it enjoys a central location, the hotel is on a quiet street, providing a peaceful atmosphere. There is convenient access to public transport, including metro line 2 and Banco de España Station nearby.
We stayed in a Superior room, which, although somewhat small, was nicely appointed and modern. The hotel does not have swimming pool facilities, but it does feature a lovely rooftop patio. Additionally, the breakfast offered was fantastic.
Argüelles Neighborhood
The Argüelles neighborhood is a charming area located just west of Madrid’s bustling city center. Primarily residential, Argüelles offers a quieter and more relaxed atmosphere compared to central neighborhoods like Sol or Gran Vía. Among the main attractions in Argüelles is the Templo de Debod, an ancient Egyptian temple that stands out as one of Madrid’s most unique landmarks. Additionally, Parque del Oeste, a large and lush park, features peaceful walking trails, scenic viewpoints, and a beautiful rose garden known as La Rosaleda.
The architecture in Argüelles is a delightful mix of 20th-century buildings and traditional Madrid-style apartments. The area is visually appealing, characterized by wide streets and a calm ambiance, providing a refreshing contrast to the more touristy parts of Madrid. With its tree-lined streets, local shops, and slower pace, the Argüelles neighborhood is an excellent choice for travelers seeking a more authentic Madrid experience while remaining close to the city’s cultural sites, shopping, and dining options.
Barceló Torre de Madrid
The fifth of our 5 best luxury and boutique hotels in central Madrid is Barceló Torre de Madrid. It is a luxurious 5-star hotel located on Plaza de España, with the Plaza de España Metro station conveniently situated right near the entrance. The hotel features a spa that includes an indoor pool, a sauna, and a gym. We enjoyed a delicious breakfast with a wide variety of options.
During our stay, we booked the Premium Room with City Views, which was spacious and beautifully designed. It had a large balcony where we could comfortably see down the main street of Gran Vía and enjoy a view of Plaza de España. We visited during Christmas, and the Plaza de España hosted a large Christmas market called La Navideña, which even included an ice rink!
Bonus: Budget-friendly boutique hotel in Central Madrid
We decided to include a budget-friendly hotel option in Madrid that we have stayed at many times and loved.
Suites Viena Plaza de España
Suites Viena Plaza de España is a charming 3-star boutique hotel that offers a luxurious stay on a budget. It is situated on a quiet street near Plaza de España, and within a short walk from Gran Via Street, Templo de Debod, and the Royal Palace. Public transportation is easily accessible, with metro lines 10 and 3 stopping at the nearby Plaza de España metro station.
During our stays at Suites Viena Plaza de España, we stayed in different rooms, but our favorite was the Junior Suite, which features a private terrace complete with a table, chairs, and a lounger. The rooms are spacious and well-equipped with kitchen facilities. Although the hotel does not have pool or spa amenities, it does offer a delicious and plentiful breakfast, and the staff is exceptionally friendly and attentive.
If none of our chosen luxury and boutique hotels in Central Madrid suit you, explore more accommodation options in Madrid:
Well, this is it! We hope our guide to the 5 best luxury and boutique hotels in central Madrid, Spain helps you choose the best hotel option for you.
