Hostels in Madrid are the best way to discover the city; ideally, book yours somewhere in the old quarters. You can get accommodation in the Habsburg's district, the city's oldest area, with the impressive Plaza Mayor, an area ideal for a caña (little beer) and a free tapa! Another good area to book your youth hostel in Madrid is the trendy district of Malasaña, where fashionable shops mix with popular bars. Go for cheap hostels in Madrid district of La Latina if you want something less touristic but lively.