17 CHEAP HOSTELS in MADRID [Bargain guide]

Madrid is one of the best European destinations, with historic and cheap attractions, a rich culture, and brilliant nightlife. One of the best things about Madrid is that you can spend weeks here without it costing too much! There are so many activities that you’ll want to try, so we’ve found all the best cheap hostels in Madrid so you can spend your money on more exciting things. 

Whether you’re spending a weekend in Madrid or seeing what it feels like to live here, you’ll have an incredible stay! Choose between party hostels, cultural hubs, and activity-rich areas. There’s something for everyone!

Quick Answer: Best Cheap Hostels in Madrid

Best Overall Cheap Hostel in Madrid – Ok Hostel Madrid
Best Cheap Hostel in Chueca Neighborhood – Room007 Chueca Hostel
Best Cheap Hostel in Madrid Old Town – Mola Hostel
Best Cheap Youth Hostel, Madrid – Safestay Madrid
Best Cheap Hostel near Plaza Mayor – Far Home Atocha

#1 – Ok Hostel Madrid

Best Overall Cheap Hostel in Madrid

Ok Hostel Madrid
Ok Hostel Madrid is our pick for the best overall cheap hostel in Madrid
  • Set in a beautiful historical building with modern facilities
  • Fantastic community vibe, with an outdoor terrace and communal lounges
  • The bar is a great place to get to know your new friends – with 1 free welcome shot!

Ok Hostel is the best hostel in Madrid! The enthusiastic staff host regular events, like walking tours, bar crawls, and exciting communal dinners. The rooms all have en-suite bathrooms, and the beds are super comfortable. This is a fantastic place to meet people and get to know the incredible city of Madrid!

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#2 – Room007 Chueca Hostel

Best Cheap Hostel in Chueca Neighborhood

Room007 Chueca Hostel
Room007 Chueca Hostel is our pick for the best cheap hostel in chueca Neighborhood
  • The trendy hostel is located in one of Madrid’s trendiest neighborhoods
  • Fun activities include walking tours, flamenco shows, and tasty tapas tours
  • Stick to your budget with a well-equipped kitchen or grab lunch at the gastropub

If you’re looking for an easy holiday in Madrid, this is the best hostel for you! It’s centrally located, with something going on almost every day. The staff is also very happy to help you plan your trip, and a free walking tour will introduce you to some of the best places in Madrid!

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#3 – Mola Hostel

Best Cheap Hostel in the Madrid Old Town

Mola Hostel
Mola Hostel is our pick for the best cheap hostel in the Madrid Old Town
  • Located in the popular Old Town, Mola Hostel is perfectly positioned for both nightlife and historic touring
  • The atmosphere is creative and fun, and the design simple and modern
  • Clean rooms, comfortable beds, and friendly staff make it great

One of our favorite Madrid hostels, Mola Hostel is the perfect base in Madrid’s Old Town! Meet fellow travelers on one of the many organized activities, and explore the many bars, clubs, and cafes in the area. The hostel is also a few steps away from public transport, so you can easily reach the rest of Madrid!

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#4 – Safestay Madrid

Best Cheap Youth Hostel, Madrid

Safestay Madrid
Safestay Madrid is our pick for the best cheap Youth Hostel, Madrid
  • A speak-easy pub with live DJ sets and an in-house movie theatre make this a fantastic youth hostel
  • Safestay is fantastically located, surrounded by chic and quirky stops
  • The simple monochromatic design contrasts with the charming 19th-century building 

Safestay is an awesome place to come back to after a long day taking in the beauty of Madrid! Watch the bustling city with a drink in hand from the rooftop terrace or make a snack in the communal kitchen. Don’t miss out on the frequent pub-crawls – you’re bound to be friends with half the hostel by the end!

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#5 – Toc Hostel Madrid

Toc Hostel Madrid
Toc Hostel Madrid
  • Hang out in the games room or at the pool table, or head to the in-house bar and restaurant
  • Enjoy your own space in the cabin-style dorms and make use of the book exchange
  • The great perks and beautiful building make for a brilliant stay!

This centrally located hostel is another of the very best hostels in Madrid! You’ll want for nothing, with great amenities and services. The rooms are attractive, large and comfortable. The bar and restaurant serve fantastic low-budget local cuisine and drinks. Whether you’re interested in meeting people or chilling in your own group, you’ll have a great time here!

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Editor’s Tip: make friends by staying at a cool hostel in Valencia!


#6 – Far Home Atocha

Best Cheap Hostel near Plaza Mayor 

Far Home Atocha
Far Home Atocha is our pick for the best cheap hostel near Plaza Mayor
  • Bright and colorfully decorated with a laid-back vibe
  • Far Home Atocha is perfectly located and in a gorgeous building
  • Feel at home in the comfortable rooms and make use of the communal kitchen

This fantastic budget hostel is located right on Madrid’s main street! You cannot get more central, or at a better price. It’s also very welcoming to older travelers, so if you’re over 30 and looking to distance yourself from the younger crowd, you can’t get better than this! Hearty breakfasts are available daily, and the communal kitchen is fantastic!

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Looking for the Party? We’ve got you covered with our guide to the best party hostels in Madrid!


#7 – Las Musas Hostel

Las Musas Hostel
Las Musas Hostel
  • Las Musas offers some fantastic activities, including drinking game nights and flamenco shows!
  • One of the best hostels in Madrid, Spain, Las Musas has fantastic staff and a 24-hour reception
  • You can use common areas and luggage storage even before your room is ready to move in

Take advantage of the lockers, book exchange, and handy lift to carry you up to your room in the early hours of the morning! You’re going to have a fantastic holiday here, meeting new people and experiencing Spanish charm and flavors! Stay in a female-only dorm, a mixed dorm or a private room.

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Editor’s Note: You can have a great time in Barcelona staying at one of the top party hostels!


#8 – Mad4You Hostel

Mad4You Hostel
Mad4You Hostel
  • This beautiful hostel is situated in a refurbished 15th-century Spanish house
  • A wonderful free breakfast makes no difference to the price!
  • It’s an affordable space suited to many different interests with a lively atmosphere

A few minutes walk from the Tribunal metro station, Mad4You is an amazing budget hostel! Free, delicious breakfast is served daily. The neighborhood is artsy and well-suited to young travelers. You can make use of the kitchen until midnight, and there’s a book swap!

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Editor’s Note: Get to know the city from these great hostels near Madrid Airport!


#9 – Way Hostel

Way Hostel
Way Hostel
  • For a little quirk, color, and enthusiasm, Way Hostel is one of the best in Madrid
  • They arrange daily events, including Saturday tango dance lessons!
  • Rooms are spacious and comfortable, and the staff is incredibly helpful

Way Hostel is the perfect place to let off steam and relax after a long Spanish adventure. You can enjoy some privacy and relaxation, or join the group tours to see all of Madrid! Many nights you’ll find the sangria flowing, and the conversation to match.

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Planning to visit Barcelona? Some of the best hostels are near Barcelona Airport!


#10 – Room007 Ventura Hostel

Room007 Ventura Hostel
Room007 Ventura Hostel
  • Room007 Ventura Hostel is a lovely boutique hostel for low-budget luxury
  • The in-house gastropub is one of the best and most popular among locals
  • Go on a free walking tour or join one of the frequent pop-up events and markets

This lovely little hostel is located in Barrio de las Letras, Madrid’s literary district! The rooms are really beautiful, with simple decor and all the amenities you’d like. The hostel has two elevators and is wheelchair-friendly! The neighboorhood is perfect for foodies and culture enthusiasts!

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#11 – Generator Madrid

Generator Madrid
Generator Madrid
  • Centrally located in a brilliantly refurbished 1930s building
  • Sip on cocktails at the rooftop bar or enjoy Spanish cuisine at the restaurant
  • Generator Madrid is wheelchair-friendly, with an elevator and easy access

A wonderfully cultural hostel, staying at Generator Madrid is an excellent way to immerse yourself in the city. It’s located near some of the best Madrid nightlife, as well as some amazing attractions, like the curiously placed Templo de Debod! They have under-bed security lockers for perfect convenience!

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#12 – Far Home Gran Via

Far Home Gran Via
Far Home Gran Via
  • This small budget hostel is modern, well-furnished and very clean
  • The staff is really friendly and helpful, and the hostel host is very funny!
  • A continental breakfast is served every day, and there are great free amenities

Stay at this elegant hostel to feel like you’re home in Madrid! The location is perfect, close to some of the metropolis’ best museums and attractions. The kitchenette is well-equipped, and the rooms are large and airy. Staff can help you reserve shows and tours, and find all the best activities!

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#13 – Barbieri Sol Hostel

Barbieri Sol Hostel
Barbieri Sol Hostel
  • The comfortable common room has a TV, and the outdoor terrace  has a great view
  • Everything is provided – just bring a padlock for the lockers!
  • The communal kitchen is clean and well-kitted, and the staff is super helpful

Choose between a mixed dorm and a romantic private room at this exciting hostel! Barbieri is full of backpackers. The showers always have hot water, and the beds are really comfortable and large! It’s everything you could want. The team is really friendly and very capable.

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#14 – Open Hostel Madrid

Open Hostel Madrid
Open Hostel Madrid
  • This social hostel is fantastic value for money, and one of the cheapest hostels in Madrid!
  • The relaxed atmosphere and fun shared spaces make it great fun
  • Staff can send you off with bike hire and a free map with directions to all the top Madrid attractions

Stay in a cabin-style bed with a light, plug socket, and fast, free wifi! The hostel has a lovely bar and lounge where you can meet people and spend some time relaxing out of your room. The location is great for those looking to experience Madrid’s culture and history, or the vibrant nightlife!

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#15 – MuchoMadrid

  • Spend time with locals and tourists at this fun-loving hostel
  • A big, tasty breakfast is included in the price, so you’ll leave every morning happy and full of energy
  • Daily housekeeping is provided, and the amenities provided are lovely

If you’re interested in staying in a smaller hostel where you can get to know all your fellow travelers, MuchoMadrid is the best hostel for you! The five rooms are small and cozy, and you can hang out with your new friends in the kitchen while you cook up a storm, or in the lounge! You can also book out a room for your group!

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#16 – Hostal Los Alpes

Hostal Los Alpes
Hostal Los Alpes
  • Hostal Los Alpes has some of the cheapest private rooms in Athens
  • It’s a great place to spend some time alone or with a partner
  • Rooms are clean, comfortable and private, with televisions and en-suite bathrooms

If you’re looking for a private room in a perfect location, you won’t get better with Hostal Los Alpes! Located near Madrid’s best nightlife, you’re bound to have a great time. Every room has safes, a television, a bathroom with a shower, and air-con! The staff is terrific, and the recent refurbishing means everything is fresh and beautiful.

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#17 – La Posada de Huertas

La Posada de Huertas
La Posada de Huertas
  • Centrally located and surrounded by Madrid’s best neighborhoods and attractions
  • Make the most of your holiday with the tasty free breakfast and frequent bar crawls
  • Great for all travelers, with spaces and activities for solo travelers, couples and groups

Our last Madrid hostel is a charming place with lots to offer! You can catch up with the folks back home on their computers or with the wifi. The common rooms are cozy and colorful, and you can check out the activity board to see what activities to join and where to meet people. You can even add your own!

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With such incredible budget hostels, a vacation in Madrid doesn’t have to cost much at all! Especially if you’re joining free activities and fun. 

The city has such a diverse selection of budget accommodation! You can find a place where parties are held and joined every night, or a calm and quiet hostel in one of Madrid’s cultural neighborhoods!

We’ve found hostels for every kind of traveler and in all the best of Madrid’s neighborhoods! You can choose according to your interests, or the area. No matter which hostel you choose, you’re bound to have an amazing time exploring Madrid, and without breaking the bank!

***Disclaimer*** Some of the links in this post are affiliate links. This means that if you book your accommodation through the site, One Weird Globe will earn a small commission at no extra cost to you. Your support helps me keep the site going :)

Aiden Higgins