Madrid's celebrated budget accommodation — The Hat, a design-forward hostel/hotel between La Latina and Sol with one of the finest rooftop terraces in the city center (free for guests, with views of the Royal Palace, La Almudena Cathedral, and the Madrid skyline), dorms from €25 and private rooms from €80, in the ideal position for first-time Madrid visitors.
Why We Chose It
The Hat is the hostel that converted skeptics to the concept — a property that applies genuine design thinking, sustainable philosophy (the building's renovation maintained its 19th-century structure), and rooftop hospitality to the budget accommodation market. The rooftop terrace (accessible to all guests, free of charge) provides a premier views in central Madrid: the Royal Palace of Almudena Cathedral illuminated at night, the historic skyline, and the social energy of other travelers sharing the experience make it one of the memorable Madrid hotel moments available at any price point. The range of rooms (dorms from €25, basic privates from €80, upgraded suites from €150) means The Hat functions as both a hostel for budget travelers and a characterful mid-range option for those wanting the social energy and rooftop access without sharing a room. La Latina position means El Rastro, Calle Cava Baja tapas, and Plaza Mayor are all within 5 minutes' walk.
What Stands Out
- Most celebrated budget accommodation in Madrid: The Hat consistently wins hostel awards for design and experience
- Rooftop terrace (free for guests): Royal Palace and Almudena Cathedral views — one of the finest rooftop positions in central Madrid at any price
- Dorms from €25, private rooms from €80: the price range that makes notably central Madrid accessible at every budget level
- La Latina position: El Rastro, Calle Cava Baja tapas, Plaza Mayor, all within 5 minutes' walk
- Design hostel: genuine design thinking applied to budget accommodation — the antidote to generic chain hostels