There are a number of hotels to choose from that range in price and location. Hotels in Madrid are rated from one to five stars, with the five star hotels being the luxury options. Hotels include service such as laundry and complimentary breakfast. You can expect a middle of the range hotel to cost in the region of 75 euros per night.

Aparthotels are apartments that are found within hotels. These offer many of the additional services that hotels offer, such as laundry, breakfast in your room, reception and wake-up calls, however they are more private than a hotel. They are also larger than hotel rooms as they are apartments and so they often suit those who are traveling as a family and may want some extra space. They are rated by a key system and you will generally find that when comparing a hotel of 3 stars with an aparthotel of 3 keys, the aparthotel will be a slightly cheaper option.

Another good option for a family, who is on holiday in Madrid, is the self catered apartment option. These will provide you with more space, more privacy and more freedom than staying at a hotel or even an aparthotel. They will also give you more of a feel of living in the city. You can generally expect to pay from 75 euros per day for these apartments.

Youth hostels, otherwise known as albergue juvenile, are the cheapest holiday accommodation option available. They will generally cost you around 15 euros a night. These have shared sleeping dormitories which are usually same sex. They may also provide family or group rooms. These are a great place to stay for single young travelers as they are cheap, you will meet other fellow travelers and you will find out a lot about what is happening in the region.

The word "hostal" is a Spanish word that is used to refer to a small, typically family-run hotel. These hostals are cheaper than staying in a hotel as they do not offer the same amenities as hotels. They are rated from one to three stars. You can generally choose to rent a room either with or without a private bathroom, in which case you will need to use the shared bathroom. It is similar in concept to a guesthouse. They are generally clean and friendly with plenty of tourist information at hand.

You should look into the area that you would like to be based in before you look for accommodation options to choose from. The center of the city is noisy and full of bustle. If that suits you, you should look to stay in the area of Puerta del Sol. If you want to be in a quieter area, but still near the center of the city, you can stay near the Paseo del Prado.