In the heart of old Madrid and yet a world apart from the touristy mayhem surrounding the royal palace, La Latina is the perfect place to base a stay in the city. For me, the steeply sloping squares and cobbled streets of the barrio (neighbourhood) offer a tranquil retreat into historic Madrid. By contrast, the bustling Cava Baja and in Mercado de Cebada in the upper section are a foodie heaven. A little bit more grown-up than Malasaña and Lavapiés, it has a sophisticated, traditional vibe that's hard to beat, delivering the perfect mix for a delightful stay.
For links, visit my website.