The Hat Madrid
by the TopOfHotel team
The Hat is the rare budget hostel that hands you a luxury-hotel address in the old town — pretty rooftop bar, sharp design and a friendly crowd reviewers keep raving about, traded against compact rooms and stairs in parts of the building.
The Hat is the rare budget hostel that hands you a luxury-hotel address in the old town — pretty rooftop bar, sharp design and a friendly crowd reviewers keep raving about, traded against compact rooms and stairs in parts of the building.
In-Depth Review
Rooms and decor
Picture a hostel that ditches every grim-bunk, cold-steel-frame cliche — that's the charm of The Hat Madrid, set inside an old mansion in the middle of Madrid's old town and open since 2016. The interior runs warm industrial-chic: brown wood, black steel framing, exposed brick and soft lighting that makes walking in feel closer to a hip cafe or boutique hotel than a budget bed. Rooms come in a range to suit your budget and style, from dorm beds for backpackers who want to meet fellow travelers to private singles, doubles and family rooms for anyone after more privacy. The rooms are clean and pared-back, the beds are comfortable, and there are thoughtful touches like bedside power outlets and personal reading lights in the dorms. Plenty of reviews land on the same verdict: this looks better than the price you paid. Anyone who thinks a hostel has to be shabby and styleless tends to change their mind here.
Food and amenities
If this place has a beating heart, it's the top-floor rooftop bar that looks out over the old town's tiled roofs all the way to the skyline. In the soft early-evening light, heading up for a drink at sunset is one of the moments guests mention most — relaxed, easy, and a meeting point where both hostel guests and locals come to sit. The other thing that makes The Hat special is the free sangria-making workshop, where guests learn to mix Spain's signature drink while getting to know new friends — a small activity that turns strangers into table-mates in minutes. Downstairs there's a common area and lounge for resting, working or planning your days. Breakfast is fuller than the usual hostel spread, with savoury and sweet options, pastries and coffee, and private rooms even get it served to bed for a small-hotel feel. The practical kit is all here too — air-con, free Wi-Fi, and staff that reviews call friendly and genuinely good at steering you to standout restaurants and sights nearby.
Location and getting there
Location is the trump card here, no question. The Hat Madrid sits on Calle Imperial in the heart of Centro, and walking out the door it's about 150 metres, or roughly 2 minutes, to Plaza Mayor, the historic square at the core of old Madrid. Puerta del Sol — the central square that marks Spain's Kilometre Zero — is about a 3-minute walk away. Nearby you'll also find Mercado de San Miguel, the famous tapas market, and for the night-out crowd the La Latina district, known for tapas bars and nightlife, sits right next door, just a few steps away. Getting around is easy: Sol metro (lines L1/L2/L3) is about a 3-minute walk and La Latina station is close too, so hopping on the metro to anywhere in the city is simple. The short version: if you want to wake up and walk straight into old-town Madrid — squares, tapas, lively quarters, almost no transit needed — this address is a budget traveler's dream that's hard to find at hostel prices.
Things to know before booking
Straight talk to help you decide. First, space: this is a hostel in an old building, so private rooms and dorm beds run fairly compact, and luggage storage or lockers may not be large. Anyone traveling with a big suitcase or who likes open rooms may find it tight. Second, noise: with a spot in the heart of the old town next to the La Latina party district, street-facing rooms can catch the late-night buzz, especially Friday and Saturday. If you're a light sleeper, ask for an interior-facing room or a higher floor. Third, understand that this is a hostel, not a hotel, so there are no big-hotel facilities like a pool, spa or full 24-hour service. Parts of the old building mean climbing stairs, and some dorm types use shared bathrooms — if you want full privacy, book a private room from the start. Overall, set your expectations to a good-quality design hostel and there's almost nothing to fault.
Our take
After reading through hundreds of real guest reviews, our team is comfortable saying The Hat Madrid nails an old-town address on par with luxury hotels, design that outpaces its price, a rooftop bar with a lovely view, and a crowd so warm you leave with new friends. If the trip in your head is waking up and reaching Plaza Mayor in 2 minutes, spending the day on the old town and tapas, then coming back up to the rooftop for a sangria at sunset with fresh travel companions, this is a seriously good-value pick at a price budget travelers can reach. But if you expect spacious rooms, full privacy or hotel-grade facilities, this may not be your answer. Overall we give it 8.9/10 — best for backpackers, solo travelers and budget-minded guests who value an unbeatable location, a friendly vibe and real value over polish.
Score Breakdown
Assessed by our editorial team from data and real guest reviews
The Honest Verdict — pros & what to know
- An elite address — it sits on Calle Imperial, about 150m (2 min) from Plaza Mayor and roughly 3 minutes from Puerta del Sol. You step outside and land squarely in old-town Madrid, all at hostel rates.
- The top-floor rooftop bar looks out over the old town's tiled roofs to a sunset view, and it's a popular gathering spot where both guests and locals drop in for an evening drink.
- Design that punches above the price: warm tones with wood, steel and exposed brick give it a boutique-hotel feel rather than a generic hostel. You can pick a dorm bed or a private room to match your budget.
- A genuinely warm, social atmosphere with a free sangria-making workshop and shared common areas built for meeting people. It's a strong fit for solo travelers who want to find new friends.
- Reviews consistently praise the cleanliness and the staff, who are attentive and good at pointing you to local restaurants and sights. Private rooms even get breakfast served to bed, a touch that feels more hotel than hostel.
- This is a hostel in an old building, so private rooms and dorm beds run fairly compact and luggage storage is limited. Anyone hauling a big suitcase or craving open space may find it tight.
- It sits in the heart of the old town right beside the La Latina party district, so street-facing rooms can pick up late-night noise, especially on weekends. Light sleepers should ask for an interior-facing room or a higher floor.
- Being an old building, parts of it mean climbing stairs, and as a hostel it skips hotel-grade extras like a pool, spa or full 24-hour service. Some dorm types share bathrooms, so book a private room upfront if you want full privacy.
Who It’s For
Match Score by travel style
Amenities
Location & Nearby Spots
Things to do near Madrid
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Insider Tips
- Head up to the rooftop bar in the early evening before sunset — it's the best spot here for old-town roof views and photos. Seating is limited, so grab a table early.
- If you sleep lightly, request a room facing the building's interior or on a higher floor, away from the street and the La Latina nightlife that runs loud on Friday and Saturday nights.
- Make the location work for you — Plaza Mayor, Mercado de San Miguel and the La Latina tapas bars are all walkable with no transit needed, while Sol metro (L1/L2/L3) is about 3 minutes away for the rest of the city.