There are hundreds of cheap hostels in Madrid which are ideally situated in the historic centre near the Puerta del Sol. Not so long ago it was no problem to arrive in Madrid and find budget accommodation on the spot but times have changed. Today Madrid is a popular year round destination so it’s essential to book ahead so as to avoid hours of wandering around the city’s hostels hoping there’s a room somewhere in the heat of the day.
Below we’ve listed a few recommended hostels in Madrid which you can reserve online by simply paying them a 10% deposit in advance and the balance once you arrive. They are listed according to location though all are very central. Just click on the name of any of the Madrid hostels to find out more information and to reserve your budget accommodation in Madrid before travelling.
Madrid Hostels Near Puerta del Sol
Hostal Cruz Sol **
Plaza de Santa Cruz nº 6, 3º piso,
A perfect location just 20m from Madrid’s great square, the Plaza Mayor, and only a few minutes away from the city’s other most popular areas.
Hostal Marlasca **
C/Cruz 14 -2º,
The Hostal Marlasca lies right next to the Puerta del Sol in a privileged location providing easy access to the capital’s main monuments and cultural sites.
Hostal Castilla II **
C/ Marqués Viudo de Pontejos, 2,
A popular hostel with 26 rooms located just 25m from the Plaza Mayor and Puerta del Sol and only a few minutes away from the city’s most popular cultural areas.
Madrid Hostels Around Gran Via
Hostal San Lorenzo ***
C/ Clavel 8,
San Lorenzo Hostel is just off Gran Via, Madrid city’s main street. It is a 3-star hostel with 48 rooms on 3 storeys. Very clean, modern and comfortable, San Lorenzo is safe and in a superb location for exploring Madrid’s wide variety of tapas bars, restaurants, shops, sights and nightclubs.
Madrid Hostels Near Atocha Railway Station
Hostal Cervelo **
Atocha, 43,
The Hostal Cervelo is located in the centre of Madrid in a historic building dating back to 1850. It was fully renovated in 2001. The hostal is only 10 minutes walk from the Puerta del Sol, the museums of the Art Circuit and the Atocha Railway station.
Hostal Martín **
Atocha, 43,
The Hostal Martin is located in the centre of Madrid in the same historic building as the Hostel Cervelo just a short walk from the city’s main attractions.
Hostal Castilla I **
C/ Atocha 43, 2º D,
The Hostal Castilla I is located in an totally renovated historical building in the centre of Madrid with easy access to the Puerta del Sol, Plaza Mayor, the Cathedral, Royal Palace, Prado and Reina Sofia and Thyssen Museums.



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