Puerta del Sol / Arenal

Petit Palace Puerta del Sol

★★★★★

Petit Palace Puerta del Sol is a smart way to stay in the very centre of Madrid without paying centre-of-Madrid prices. The hotel is at Calle del Arenal 4, the pedestrian street that runs from the Puerta del Sol to the Teatro Real and the Royal Palace, so you are a minute from Sol and its metro, five minutes from the Plaza Mayor and about ten from the palace. The building has a handsome nineteenth-century facade, and inside it keeps period details such as an old lift and wooden staircases, while the interior was completely renovated in 2026, giving the rooms a fresh, contemporary look. Petit Palace is a Spanish chain of boutique hotels with a practical, modern style, and this property is especially good for families: alongside singles and doubles, it offers quadruple rooms and superior quadruple rooms with a terrace, all soundproofed, with cribs and high chairs available on request. Some rooms have views or terraces facing the Puerta del Sol. Rooms are compact, as is typical in historic buildings in the old centre, but well designed. A buffet breakfast with classic and healthy options is served each morning, and the hotel offers free bicycles at reception, a 24-hour front desk, free wifi and luggage storage, which is useful on departure days. Pets are welcome and stay free when booked through the official website. The location is the main reason to stay: everything in the historic centre is within walking distance, from the Plaza Mayor and the Mercado de San Miguel to the Royal Palace, the Gran Vía and the Barrio de las Letras, and the Sol transport hub connects you to the rest of the city and to Atocha and Chamartín stations by commuter train.

Who it suits: families on a budget who want a room for four right in the centre; first-time visitors who want to walk everywhere; travellers with pets; and anyone who values location over facilities. It is not the place for a pool or a spa, and rooms are on the compact side. Calle del Arenal is busy during the day and in the evening, but the soundproofing helps, and interior rooms are quieter.

Living in it: book a quadruple room early if travelling as a family of four, and consider the superior quadruple with a terrace for extra space. Ask for a room facing Sol if you want the view of the square, or an interior room for calm. Use the free bikes to ride to the Madrid Río park or the Retiro. Breakfast is convenient, but the area is full of cafés, including the classic La Mallorquina pastry shop at Sol and the San Ginés chocolatería around the corner.

Value: rates are budget to mid-range for this central location, especially good value for families who can fit four in one room. Book directly for the pet policy. Madrid does not currently charge a tourist tax. Choose it for an affordable, freshly renovated base a minute from the Puerta del Sol, with rooms for the whole family. If it is full, the same chain runs several other hotels in the old centre, so it is worth comparing them on the official site.