The best luxury hotels in Madrid are Rosewood Villa Magna on Paseo de la Castellana, Mandarin Oriental Ritz next to the Prado Museum, The Palace (formerly The Westin Palace), The Principal Madrid on Gran Vía and Four Seasons Hotel Madrid near Puerta del Sol. Each combines a historic building or prime address with top-end service.
Madrid has seen a wave of high-end openings and restorations in recent years, and several of its grand old hotels have been renovated. Here is a guide to the five best, with what makes each one stand out.
Quick facts: luxury hotels in Madrid
| Hotel | Area | Key fact |
|---|---|---|
| Rosewood Villa Magna | Paseo de la Castellana | Reopened November 2021, 154 rooms and suites |
| Mandarin Oriental Ritz | Next to the Prado Museum | Opened 1910, reopened April 2021 |
| The Palace | Centro, near Plaza de Neptuno | Opened 1912, rebranded March 2025 |
| The Principal Madrid | Gran Vía | First five-star hotel on Gran Vía |
| Four Seasons Madrid | Calle de Sevilla, near Puerta del Sol | Opened September 2020, seven historic buildings |
1. Rosewood Villa Magna
The old Villa Magna on Paseo de la Castellana reopened as Rosewood Villa Magna on 7 November 2021 after a full renovation. It has 154 rooms and suites, and it was the fourth Rosewood hotel in Europe.
Also read10 Most Exclusive Resorts in India for a Lavish Retreat in 2026
The address is one of the best in the city. Calle Serrano, with its shops and restaurants, is a few steps away, and the Prado Museum is about a 25-minute walk. The rooftop Anglada House is a two-bedroom suite of about 220 square metres with a private terrace, gym and sauna. The hotel also runs several food and drink outlets for guests and locals, including Amos restaurant.
2. Mandarin Oriental Ritz
The Ritz first opened on 2 October 1910 next to the Prado Museum. After a complete renovation led by architect Rafael de La-Hoz and French designers Gilles and Boissier, it reopened as Mandarin Oriental Ritz, Madrid on 16 April 2021.
The decor uses art deco touches such as gilding, palms and fan-shaped mirrors, with a modern finish. The location puts guests within walking distance of the Prado, the Thyssen-Bornemisza Museum and El Retiro park, all part of the UNESCO World Heritage area known as the “Landscape of Light”.
3. The Palace (formerly The Westin Palace)
This grand hotel opened on 12 October 1912 and was the first in Spain to have a bathroom and telephone in every guest room. Its glass-domed lounge is its most famous feature, and during the Spanish Civil War the space was used as an operating theatre because of its natural light.
Past guests include Pablo Picasso, Marie Curie, Salvador Dalí, Ernest Hemingway, Orson Welles and Rita Hayworth. Its 1912 Museo Bar is linked with Dalí and Hemingway, who both drank there. Updated for 2026: after a renovation of its public areas that began in 2023, the hotel left Marriott’s Westin brand and became The Palace, a Luxury Collection Hotel, Madrid on 14 March 2025.
4. The Principal Madrid
The Principal sits at the corner of Gran Vía and Calle Marqués de Valdeiglesias in a fully restored landmark building. It describes itself as the first five-star hotel on Gran Vía and is part of the Único Hotels group.
Its Ático Restaurant and Terrace on the sixth floor serves seasonal Spanish food with views over Gran Vía and the city’s rooftops. Rooms are bright and quiet, a welcome contrast to the busy street below. Some rooms look out towards the famous Metropolis building.
5. Four Seasons Hotel Madrid
Four Seasons opened in Madrid in September 2020, in one of the hardest years the hotel industry has faced. The hotel combines seven restored historic buildings on Calle de Sevilla, between Puerta del Sol and Barrio de las Letras.
It has 200 rooms and suites, plus private residences. Facilities include a spa with eight treatment rooms and an indoor pool, the Dani brasserie, the Isa lounge and El Patio in the lobby. Guests also get direct access to the Centro Canalejas luxury shopping gallery.
How to choose the right hotel
- For museums: Mandarin Oriental Ritz and The Palace are closest to the Prado and Thyssen-Bornemisza.
- For shopping: Rosewood Villa Magna is near Calle Serrano, and Four Seasons connects to Centro Canalejas.
- For nightlife and views: The Principal on Gran Vía has a popular rooftop terrace.
- For history: The Palace, open since 1912, is full of stories from more than a century of famous guests.
Before booking, Indian travellers should check current visa requirements with the Spanish embassy and compare rates directly on hotel websites, as prices change by season.
For more destination ideas, see our Travel section and explore Lifestyle for more on luxury living.
Further reading: TheHospitalityDaily.
Frequently asked questions
What is the most famous luxury hotel in Madrid?
The Ritz, now Mandarin Oriental Ritz, and The Palace are the two most historic. The Ritz opened in 1910 and The Palace in 1912, both near the Prado.
Is the Westin Palace Madrid still a Westin?
No. On 14 March 2025, it moved from the Westin brand to The Luxury Collection and was renamed The Palace, a Luxury Collection Hotel, Madrid.
When did the Four Seasons Madrid open?
Four Seasons Hotel Madrid opened in September 2020. It is built across seven restored historic buildings near Puerta del Sol.
Which luxury hotel in Madrid is on Gran Vía?
The Principal Madrid, at the corner of Gran Vía and Calle Marqués de Valdeiglesias, describes itself as the first five-star hotel on Gran Vía.
Sources: Hotel Ritz, Madrid, Wikipedia; Palace Hotel Madrid, Wikipedia; Four Seasons Madrid hotel facts; The Principal Madrid, Único Hotels.
