2 Best Hotels in La Latina, Madrid

The Hat epitomizes the fast-growing category of "designer hostels," affordable properties geared toward the younger set with sleek multiperson (and some private) rooms, bumping weekend events, and generous breakfasts. Though you can find cheaper beds in the city, the Hat remains a steal considering its location just steps from the Plaza Mayor.

More like a modern village inn than a metropolitan hotel, this refurbished late-19th-century property was built atop the remains of a stone wall that encircled the city in the 12th century, which you can see through glass floor panels at the hotel entrance and in the casual restaurant. Rooms have white-tiled floors, headboards with historical prints of the city, and high ceilings with exposed wood beams. Enjoy a breakfast buffet in the restaurant, or opt for a more basic breakfast at the hotel bar-café. The owners have a similarly priced hotel next door called Posada del Dragón.