With a rooftop terrace and free Wi-Fi, this environmentally friendly boutique hostel lies bang in central Madrid and is the first hostel in its category to use biomass energy in the Spanish capital.

The Hat Madrid combines the facilities of a hotel with the freedom and laid-back feel of a hostel. You can choose between 42 private rooms and shared dorms, all of which are full of natural light and include free Wi-Fi, air conditioning and heating. Most have en suite bathrooms except for one dorm type which share bathrooms in the hall.

You can enjoy breakfast on site every morning, take part in a host of free activities and even rent bikes at the 24-hour reception desk. There are also two large communal spaces: the lobby and the roof bar.

The hostel is conveniently located just a 5-10 minute walk from the Puerta del Sol, the shops and theatres on Gran Vía and the Plaza Mayor, among other sights.