The best budget hotels in Madrid, from arty townhouses to chic posadas

Pascua Ortega, one of Spain’s most coveted interior designers, has transformed an early 20th-century industrial building into a stunning, light-filled space that has become a favourite haunt of fashion and media types. The white lobby looks like an art gallery and there is, indeed, always an exhibition on.
Pale wood contrasts with bold splashes of colour in the 34 rooms, where light floods in through big windows. The two rather splendid duplex suites have roof terraces and plunge pools. The hotel is on a corner of the lively Plaza Santa Ana in the heart of the Barrio de las Letras, which is where Madrid’s first theatres were situated back in the 17th century, and the area still has a laid-back bohemian atmosphere.

The two-star official rating really doesn’t do the Artrip justice. The emphasis here is on getting the important things right – beds, lighting, showers, soundproofing and coffee. Local artists are invited to show their work in the lobby and there is a fun vibe throughout. The building dates back to 1900 and retains some original features even though it has been totally restored. There are 17 rooms over five floors, either facing the street with French windows and small balconies, or giving onto an inner courtyard. On the top floor, there are two rooms with pitched, beamed ceilings, which are smaller but have more character and would suit both couples looking for a romantic bolthole.

Art fans will love the gallery vibe at the four-star One Shot Fortuny 07, which sits in a remodelled palatial building on one of Madrid’s smartest streets. The handsome building dates back to the late 19th century, when it was a grand private residence. Original features include the impressive entrance doors, mouldings and cornicing. The colours of the geometric carpets that line the corridors are a nod to the blue-and-yellow tiles that decorate the wooden staircase. High ceilings throughout the interior spaces and in the rooms create a gallery feel and the lobby provides a stylish backdrop for temporary art exhibitions, with a focus on photography.

These days, we are all on a quest to find stylish places to stay that are centrally located with great showers, fast Wi-Fi and affordable rates, aren’t we? Well, the new Room007 Select Sol in Madrid ticks all these boxes. The hotel is on a quiet street, five minutes’ walk from the Puerta del Sol, which is the centre of Madrid. There is a metro station there and also in front of the Teatro Real opera house, which is two minutes away. In the hotel itself, a lot of upcycled materials are used to create a contemporary look in natural tones contrasted with grey and mustard tones. The 50 rooms sleep two, four or six people in single, double and bunk beds.

Ever fancied sleeping in a theatre? At the Casual Madrid del Teatro you can – almost – as the décor is inspired by musicals and plays, with the 37 rooms themed to recreate the sets of musicals such as The Phantom of the Opera, Fame, Mamma Mia and Cabaret, or plays such as Hamlet and Romeo and Juliet. This is a fun, no-frills option right in the city centre that would suit families or groups of friends who don’t want to blow the budget on accommodation. The hotel is in the Barrio de Las Letras – the literary quarter – which is where Madrid’s first theatres sprang up in courtyards more than four centuries ago.

Once a coaching inn, the building dates back more than a century and is a traditional corrala with a central courtyard. It has been sensitively remodelled, retaining as many original features as possible while introducing modern, streamlined design to get rid of any pokiness. Under the glass floor in the restaurant you can see vestiges of the 12th-century city wall. The 17 rooms are set around the courtyard on three floors with contemporary design in black and white with splashes of bold colour. Mosaic-tiled bathrooms have powerful showers and some also have baths.

Bright, contemporary design creates a warm, informal atmosphere. As you enter the lobby, your eyes are drawn to an arrangement of old telephones on the wall, each painted white, which have been upcycled from the rooms of the traditional hotel that this building used to house. Sustainable materials, such as recycled wood and cardboard, have been used wherever possible. Stylish modern furniture, a sleek fireplace and bookshelves make the lounge area a comfortable place to sit and read. Rooms are small and simple but perfectly comfortable, with memory foam mattresses, duvets and a choice of pillows. Those on the top floor have balconies with great views.

LaNave is dubbed a ‘poshtel’ and has the warm feel of a hostel and the quirky design details of a boutique hotel. Lovers of loft-style industrial architecture will feel right at home in this 19th-century building, which was formerly a factory that made railway components. The large, open space has been cleverly remodelled, making the most of original features such as open-brick walls, iron girders and wooden beams. Each room is different, but all have natural light. The décor mixes industrial features with rusticity. The wooden beds are custom-made with headboards from Andalusian farmhouses, supersoft Italian cotton sheets and colourful cushions.

This inn in the oldest and most atmospheric part of Madrid is now a chic three-star hotel where contemporary style blends smoothly with traditional architecture. A great on-site tapas bar and an informal vibe make La Posada del Dragón an attractive option if you like places with distinctive character. There are 27 rooms on three floors with superb memory foam mattress and pillows, large televisions and minibars. Four on each floor are at the front of the building and give onto Cava Baja – these rooms are considerably larger and lighter but there is likely to be noise from the street at night.

A former fabric warehouse in downtown Madrid is now a bright space with a contemporary design and a super-central location close to the major sights. A black-and-white photograph of dancing couples from the 18th century is printed on the main staircase, creating a dramatic focal point in the pleasant lobby area, where guests read magazines and plan their day. You can also sit in the small decked courtyard or go up to the roof terrace where there are fabulous views across the old town. There are 22 rooms on four floors, painted white with pops of colour but basically quite stark. Many have balconies overlooking the street.

The two-star Hostal Persal is an inexpensive hotel with a friendly atmosphere in an ideal location for a weekend break. The hotel occupies a traditional Madrilenian building – now with a striking blue façade – which dates back to 1871. Original features include brick-vaulted spaces on the ground floor, while vintage leather club armchairs in the lobby and distressed furniture lend a modern, industrial vibe to the classic setting. It couldn’t be handier for nightlife, the big museums, shopping and tapas bars. It faces a pedestrianised square just off the Plaza de Santa Ana, with loads of cafés and restaurants nearby. It is five minutes’ walk to the Puerta del Sol, the geographic centre of Madrid.