There are hundreds of places to stay in Madrid, but it’s always a good idea to book ahead. Prices in Madrid vary widely and are star-rated from one to five. Star-rating may not be a reliable guide, however, because it is based on size and facilities, not on comfort or location. There is a tax applied to hotel bills, but some hotels offer discounts on the weekends or during holidays. Many hotels are centrally located and are within walking distance of popular sights. There are also a number of colorful establishments and many with clean and adequate facilities. Be aware that hotels in the city center may be noisy and remember to ask for an air-conditioned room if you’re visiting in the summer. Some good areas to stay are in the old city center in the Puerta del Sol, Plaza Mayor, and Huertas neighborhoods. Huertas is close to many popular tourist spots and offers a good tapas bar. The artistic Golden Triangle area also offers a wealth of hotels in all price ranges. The Plaza Santa Ana area has a cluster of budget hotels.

Hostels can provide a clean, safe, and inexpensive option. Hostels are usually small, family-run budget hotels and can be found throughout Madrid. These are called “hostales” in Spanish and should not be confused with “albergues juveniles” (youth hostels). Hostels are often within a downtown apartment building and are usually clustered close together. Most rooms in hostels have only a sink in the room and a shared bathroom down the hall, although some do have in-room bathrooms with a shower.

Madrid has two official youth hostels; you should reserve a room before arriving. The Albergue Juvenil Casa de Campo is located in a park outside the city center and is a good walk to the closest metro station. The Albergue Juvenil Santa Cruz de Marcenado is a modern hostel in a quiet street in the Argüelles area. You can stay a maximum of three consecutive nights. There is a curfew at both hostels, although you can make arrangements to extend the curfew.

There are many campsites in the outskirts of Madrid. Although they are not conveniently close to the city central, the sites further away from the city are more attractive and usually have better facilities than those in the immediate outskirts of the city.