Budget accommodation in Madrid includes a vast range of well located small hotels and hostales as well as a scattering of hostels.

Mid range options include a burgeoning sector of stylish, competitively priced hotels located in all parts of the city.

Top-end choices in Madrid are divided between exclusive boutique-style hotels and luxury offerings from hotels such as the Ritz and the Palace.

Location is everything in Madrid.

If you want to be in the thick of things, choose places in Sol & Letras close to Puerta del Sol, Huertas and Plaza Mayor.

If nightlife is your prime consideration you might want to head for Chueca & Malasaña or Alonso Martínez.

However, if you want somewhere quieter and more relaxed then head for Argüelles on the edge Princesa or Parque del Oeste, the area around the Retiro and the Salamanca.

To find out more about each neighbourhood click here.

To get a prime location and take advantage of the best deals it's best to book in advance.

High season in Madrid coincides with Spanish national holidays, but prices drop when temperatures soar in the summer.

Keeping prices in the accommodation sector up-to-date is notoriously hard and deals vary according to occupation and the time of year.

To provide a sense, the average cost of a room for two people for the different categories are outlined below:

Budget: under €100

Lower mid-range: €101-150

Upper mid-range: €151-200

Top-end: €200 and above