The best hotels near Madrid Christmas Market (2025)

Last Updated on September 22, 2025 by Ioana

The Plaza Mayor Christmas Market is the most iconic and the oldest Christmas Market in Madrid. It offers Christmas lights, Christmas decorations, a Spanish nativity scene, food stalls, booths for Christmas shopping, and plenty of festive charm. In this blog post, I’ll share the best hotels near Madrid Christmas Market, so you can find the perfect base to explore Madrid during the festive season. This post contains affiliate links. When you make a purchase I may get a small commission at no extra cost to you. Find out more here.

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Hotels in Plaza Mayor

The iconic Plaza Mayor used to be the center of old Madrid. It’s located in the heart of Madrid. This rectangular plaza, which opened in 1620, has majestic architecture and cobblestones.

It also hosts the main Christmas Market in Madrid, so if you want to be in the middle of the Christmas celebrations then staying in this neighborhood is the best option. It’s guaranteed you’ll have an unforgettable stay.

Pestana Plaza Mayor

Pestana Plaza Mayor is a 4-star hotel that has 34 rooms that face the famous square. These rooms also have balconies so you can enjoy a cup of coffee or a glass of Spanish wine with city views and watch the Christmas Market from the comfort of your room.

The hotel also has a pool and a spa so you can relax and pamper yourself while in the capital of Spain. It’s a great place to stay if you would like to be as close as possible to one of the most beautiful Christmas Markets in Spain.

Petit Palace Plaza Mayor

Petit Palace is a boutique hotel next to Plaza Mayor. Fun fact: four minutes away from this hotel is another Petit Palace hotel, Posada del Peine. This is the oldest hotel in Spain (over 400 years old!). 

The Plaza Mayor hotel is located in a historical building, but it has all the modern comfort and exceptional service you would expect from a luxurious hotel. Their rooms even come with hydromassage showers.

It has free Wi-Fi and luggage storage, and flexible check-out times on Sundays and Mondays until 3 pm. 

You will be very close to Mercado de San Miguel and plenty of tapas bars and restaurants, so you’ll be able to sample everything that the Spanish cuisine has to offer.

This hotel has a prime location and it can be an ideal place to stay during the holiday season.

Hotels in Puerta del Sol

Puerta del Sol is another famous plaza in Madrid’s city center. This is where you can find the Kilometer 0 plaque. This is the origin of all roads in Spain, hence the name. You can also find the statue of the bear and strawberry tree (El Oso y el Madroño) here.

This plaza is a 5-minute walk from the Christmas Market in Plaza Mayor. So if you don’t want to stay right in the Christmas Market square, but be very close to it, Puerta del Sol is one of the best places.

Petit Palace Puerta del Sol

Petit Palace Puerta del Sol is a boutique hotel on Calle Arenal very close to both Puerta del Sol and Plaza Mayor.

It has soundproof rooms, so even though you stay in a busy area it won’t be noisy. 

​The hotel has plenty of common spaces, so you can bring take-out food and eat it at the hotel. Or you can just hang out after a day of exploring the cultural attractions in Madrid.

They are a pet-friendly hotel so you can bring your furry friend with you on the trip. They provide free bikes with child seats, free wifi, and flexible check-out times on Sundays and Mondays until 3 pm. 

​You will be very close to the market so you can enjoy the Christmas atmosphere and the holiday décor.

Hotel Catalonia Puerta del Sol

Hotel Catalonia Puerta del Sol is a 4 star hotel located in an 18-century building in the center of Madrid. It has spacious rooms with flat-screen TVs, a minibar and Nespresso machines. 

​Even though it’s a central Madrid hotel, it’s on a quieter street so you won’t have to deal with a lot of noise. You can’t beat the location since you will be walking distance to all must-see attractions.

Hotels in Barrio de las Letras

Barrio de las Letras was home to famous 17th-century writers such as Lope de Vega. Nowadays there are plenty of flamenco tablaos, coffee shops and restaurants. The entire area has cobblestone streets and a very cool vibe. 

It is one of the best areas to stay for first time visitors and the neighborhood where I stayed when I visited Madrid. It’s only about a 7-minute walk from Plaza Mayor, so you’ll still be very close to the Christmas Market if you stay here.

Hotel NH Palacio de Tepa Madrid

I stayed at NH Collection Madrid Palacio de Tepa in the city center. The hotel has a central location in the charming neighborhood of Barrio de las Letras. It’s a short walk to Plaza Mayor. 

If you stay here, you will be able to walk to most tourist attractions, including Teatro Real, The Royal Palace of Madrid, and Prado Museum.

The hotel is very close to Plaza Santa Ana, a cute plaza with a lot of restaurants and cafes. There are plenty of dining options nearby where you can get dinner, tapas, or just a drink to cap a night of exploring the Spanish capital city. 

I recommend you try the following restaurants in Plaza de Santa Ana: Vi cool, Tapa Tapa Santa Ana, and Taberna el Sur de Huertas.

The hotel room was clean and cozy, and service was 10/10. The rooms are designed in a modern style with hardwood floors even though the building of the hotel is a palace built in the 19th century.

They brought me some brownies to my room since I visited Madrid around my birthday. I thought this was such a sweet gesture! You can read my full review of this hotel here. I think this boutique hotel is the perfect place to stay for first-time visitors.

I had a great time here and I think it can also be a wonderful place to stay during the Christmas season.

Hotel Catalonia las Cortes

Another great Hotel Catalonia is the las Cortes location. This one, just like the Puerta del Sol location, is set in an 18th century building. It’s a short walk from the Prado Museum, Plaza de España, and Gran Vía. 

They offer free snacks to all their guests. You can stop by the snack location and pick anything you want from a variety of salads, sandwiches, yogurt, pastries, nuts, smoothies, teas, and soft drinks.

They also have a restaurant on site and you can order room service if you want to relax in your room instead of dining at the restaurant.

It’s another great hotel option that’s close to the Christmas Market.

Room Mate Alba Hotel

Room Mate Alba is a stylish boutique hotel in the Barrio de las Letras. They offer breakfast until 12pm so you can sleep in. This is a great perk, especially when you visit Madrid around the Christmas holidays. It allows you to fully relax and enjoy the most magical time of the year.

The rooms are beautifully decorated and they offer all amenities you would need. The hotel is dog friendly.

There is a lounge bar onsite so you can relax with a drink in the afternoon. And they also have a 24/7 fitness center so you can work out any time of the day.

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