The best cheap hotels in Madrid

The sign inside that says 'Wherever I lay my hat, that's my home' should help clear up the name of this central design hostel in La Latina. Just 150 metres from Plaza Mayor, The Hat offers sunny, cheerful rooms to suit all guests, from spaces with bunk beds for groups with shared lavatories to single and double rooms with private bathrooms – some even with a small balcony. You'll find simple yet practical Nordic design and decor, free WiFi, and a 24-hour reception. The big draw here, however, is the rooftop, which is also open to the public, and where plenty of locals hang out to pass the afternoon with a few beers.

Hotels in the Ibis chain are the most economical you can find in Madrid. This particular location is near the famous Las Ventas bullring and about 100 metres from the nearest metro, so you can be in the city centre in about 15 minutes. Rooms have a modern, minimalist feel and all have a private bathroom, TV, air conditioning and heating, and free WiFi. You can get a buffet breakfast featuring local dishes at the hotel, and nearby you'll find plenty of restaurants, bars and shops. Everything to make you comfortable at just the right price.

This is one of our favourite low-cost accommodations in the city. Not only is it centrally located right in the Chueca neighbourhood and near buzzing streets Gran Vía and Fuencarral, but it's also got a restaurant and a lovely rooftop terrace to make your stay even that much better. The shared and individual rooms have fun illustrations as frames for art, mirrors and doors that liven up the comfy basics. You've also got access to a common space with a kitchen area including a shared microwave, fridge and vending machines if you'd rather save even more by not dining out.

As the wall in the common area explains, 'mola' is a way of saying 'cool' in Spanish. This cool central hostal is just a few minutes' walk from Puerta del Sol. Its got a modern design, and both private and shared rooms with bunk beds as well as private bathrooms with a shower, making it an ideal spot to stop without having to empty your pockets to have the whole city right outside your door. In addition to the unbeatable location, you'll also get free WiFi, 24-hour reception, and organised activities you can take part in if you want. ¡Mola!.

This 'boutique hostel' is also right by Puerta del Sol and one of the most eye-catching cheap accommodations you'll find in the city centre. It's a modern, elegant space with all the creature comforts that also offers private rooms. With designer furniture, parquet floors and light colours, what you've got is a very cosy hostel indeed. The Toc has also got its own bar where they put on theme parties, as well as a pool table that's free for all guests to use. The staff are ready to give you information about Madrid as well as suggestions as to what to see and do, all from the 24-hour reception.

In addition to the selection of charming hotels and hostels, you can also find elegant apartments in Madrid for happy prices. The proof is in places like 60 Balconies Urbay Stay. Just a ten-minute walk from the Art Triangle, where you'll find the city's best museums, and just a few metres from Atocha train station, you couldn't ask for a better location. All the apartments are kitted out with stylish and colourful furniture, a fully equipped kitchen, and complimentary toiletries in your private bathroom. You also get city views, plus daily cleaning service and 24-hour reception are included in the price. A real steal!

This lovely design hotel smack in the middle of Lavapiés, one of the liveliest neighbourhoods in the centre of Madrid, is just a few metres from a huge selection of international restaurants, tapas bars, drinking holes and more. The bright-white rooms are soundproofed, have air-conditioning and heating, satellite televisions, and safes to lock away your laptops and other valuables. As the name indicates, the hotel is decorated with works of art everywhere, and rooms are furnished simply and with light touches of colour. Expect friendly service and a 24-hour reception.

Visiting a big city on a budget doesn't mean you have to stay in crummy quarters. For example, the Woohoo (how can you resist?) is a hostal with modern shared and private rooms right in the centre of Madrid, where you don't have to spend much for a comfortable place to stay. Rooms are decorated in muted tones or with splashes of bold colours, and all have TVs, reading lamps, and lockers to rent in shared rooms. The guest house has a shared lounge with a kitchen you can use to make your own meals and save even more pocket money. You'll also enjoy free WiFi and 24-hour reception. Join in on the organised excursions and activities if you're so inclined.

Set in one of the most exclusive areas of the city, this hotel has comfortable private rooms, most of them with a balcony and views, and all with mod cons. If you've got work or studying to do, you'll appreciate the extra space and work areas in the suites. Grab a drink or snack in the hotel's bar, and you can take advantage of the 24-hour reception and their car-hire service. The best of your surroundings are the nearby Lázaro-Galdiano museum and Plaza de Colón, one of the most famous squares in Madrid.

A hop, skip and a jump from La Latina metro station in one of the city's best neighbourhoods for going out for a few beers, this cheery hostel is much more than its modest name indicates. Whether you opt for a shared room of bunk beds or a private room of your own, all have televisions, a desk and table, free WiFi and private bathrooms. Shared rooms also have spacious lockers that slide out at the bottom of the bunks. The decor of light wood and pops of red complement the natural light, and some rooms have a balcony or small terrace. Prepare your own food in the communal kitchen, or head out the door, and in five minutes you're in an affordable restaurant, a lively bar, or heading toward Plaza Mayor for more choices.