Cheapest Hostels in Madrid for Smart Budget Travelers
Madrid is seriously one of the best cities in Europe if you’re traveling on a budget. You get world-class museums (hello, free entry hours!), killer tapas, incredible nightlife, and hostels that won’t drain your wallet. The hostel scene here is unreal — super social, clean, centrally located, and packed with travelers ready to explore the city together. Whether you’re a backpacker, digital nomad, or just someone who wants to save cash for churros and sangria, Madrid’s got you covered.
Why Stay in a Hostel in Madrid?
Honestly? Hostels in Madrid are where it’s at. You’ll save a ton compared to hotels (we’re talking €10–30 a night vs. €100+), meet cool people from all over the world, and score perks like free walking tours, rooftop bars, and communal kitchens. Most hostels throw in events like pub crawls, tapas nights, and group dinners — basically instant friends and instant fun. Plus, the best hostels are right in the center, so you can stumble to Puerta del Sol or Plaza Mayor in minutes.
Dorms usually run €10–25/night, and if you want privacy, many hostels offer affordable private rooms for around €50–70. Way cheaper than a hotel, and infinitely more fun.
Top Budget Hostels in Madrid
The Hat Madrid
This place looks like a boutique hotel but costs hostel prices. It’s steps from Plaza Mayor, has a killer rooftop bar with sunset vibes, and offers optional buffet breakfast for just €6. The beds are comfy, rooms have A/C and en-suite bathrooms, and there’s a basement kitchen if you wanna cook. Free sangria at night? Yep. Plus, staff will happily help you navigate Madrid’s nightlife. Dorms start around €25–40/night.
Onefam Sungate (formerly Ok Hostel Madrid)
Super popular with solo travelers who want to make friends fast. The staff is amazingly friendly, the location is perfect (near Sol metro station), and they organize tons of group activities. Rooms are clean and cozy, and the vibe is all about community. Prices hover around €18–24/night.
Cats Hostel Madrid Sol
If you wanna party, THIS is your spot. Cats has been Madrid’s legendary party hostel for 15 years. There’s a 24-hour bar, an underground nightclub called The Cave, nightly pub crawls, and even a weekly sangria party where they literally fill the fountain with sangria. The hostel itself is gorgeous too — built around a protected 17th-century Arab-Andalusian patio. Dorms start at just €19/night.
Toc Hostel Madrid
This one feels more like a fancy hotel with pod-style beds, secure lockers, and sleek modern design. Super close to the city center (0.25km), it’s perfect if you want hostel prices with hotel vibes. Great for light sleepers who still want to be social. Prices start around €17–25/night.
Room007 Chueca Hostel
Located in the trendy, LGBTQ+-friendly Chueca neighborhood, this hostel is stylish, welcoming, and close to nightlife. It’s got a lively café downstairs and walking distance to all major attractions. Prices start around €15–22/night.
Barbieri Sol Hostel
One of the highest-rated budget hostels in Madrid. Super central (0.32km from city center), with dorms and private rooms, plus a fully equipped kitchen. The staff is helpful and the vibe is chill but social. Dorms from €13/night.
The Central House Madrid Lavapiés
Brand new hostel in the artsy, multicultural Lavapiés neighborhood. Great value, super clean, and loved by solo travelers. It’s a bit more relaxed than party hostels but still social. Dorms start around €15–19/night.
Far Home Bernabeu
Perfect for digital nomads or anyone who wants a quieter vibe. Elegant, modern design, A/C in every room, and located near the Bernabéu Stadium. Starts at €22–24/night.
Way Hostel Madrid
Fun backpacker vibe near Puerta del Sol. Social atmosphere, clean dorms, and friendly staff. Dorms from €15–21/night.
Bastardo Hostel
Hipster-style hostel with art everywhere, a bar, and a coworking area. Great for creatives and remote workers who still wanna be social. Prices start around €28/night.
Tips for Scoring the Best Hostel Deals
Book early, especially for summer or weekends — Madrid gets packed. Use sites like Hostelworld, Booking.com, or check hostel websites directly for deals. Sign up for hostel newsletters; many offer exclusive discounts or promo codes. If you’re flexible, neighborhoods like Lavapiés, Malasaña, or La Latina tend to be a bit cheaper than staying right on Gran Vía.
Best Neighborhoods for Budget Travelers
Centro (Sol, Gran Vía): You’re in the heart of everything — walkable to museums, plazas, and nightlife. Most hostels are here, so you’ll never be bored.
Lavapiés: Multicultural, artsy, and slightly cheaper. Tons of international restaurants and a cool local vibe. Just be street-smart at night.
Malasaña: Hipster heaven with vintage shops, indie cafes, and nightlife. Safe but watch your bag in crowded bars.
Chueca: Trendy, LGBTQ+-friendly, and super welcoming. Great nightlife and close to everything.
La Latina: Tapas central with a chill, authentic feel. The Sunday flea market (El Rastro) is a must, but keep an eye on your stuff.
What to Look for in a Budget Hostel
Free Wi-Fi and breakfast are game-changers. Secure lockers (bring your own lock!) keep your stuff safe. Clean bathrooms and kitchens are non-negotiable. And honestly, the best hostels have awesome common areas where you can hang out and meet people. Check reviews on Hostelworld or TripAdvisor before booking — they’ll tell you the real deal.
Madrid is ridiculously budget-friendly if you pick the right hostel. Whether you’re looking to party every night at Cats, chill on a rooftop at The Hat, or make lifelong friends at Onefam Sungate, there’s a hostel that fits your vibe. Book early, compare prices, and get ready to fall in love with one of Europe’s most exciting (and affordable) cities.
