If you’re searching for a more economically-friendly hotel that still offers high quality, excellent service, and a great location, you’re in the right place. It’s no secret that Palma is home to some wonderfully luxurious and lovely hotels, but those come with a steep price tag that can start at 400€/night during the high season. Whether you’re traveling on a budget or just would prefer to spend your money on shopping and experiences rather than a place to sleep, these hotels are a good value for the level of quality.
This is a carefully curated list of hotels that offer a high level of quality, excellent service, and good locations but at more affordable price points. While they’re not hostel-level cheap, they’re more in the price range of 150€-250€/night during prime time rather than 500€/night. These hotels will give you an excellent experience and leave room in the budget for trying restaurants, shopping, experiences, and everything Palma—and the rest of Mallorca—has to offer.
Editor’s Note: Mallorqueta‘s mission is to provide you with authentic information about the island. To review our hotels, our writers (in this case Calley), who live on Mallorca themselves, visit the establishments, tour the facilities and speak with the staff. We consider a large pool of hotels first before determining our top recommendations.
Best Affordable Hotel Overall: Hotel Araxa
Step into a verdant oasis at Hotel Araxa. Located in a tree-lined, quiet residential area in Son Armadams, this family-owned hotel prioritizes tranquility and attention to detail. The property is filled with unique touches that give it a unique, cozy, and luxurious feel.
It feels as if you’re stepping back in time walking up to the retro Hotel Araxa, strolling through the gardens with the koi pond on one side and a sizable pool on the other, entering the doors under a black-and-white checked awning. The front lobby also blends the past and present together in all the best ways. With large windows overlooking the gardens, wood and metal details, and a selection of antiques, it’s bright, airy, and cozy.
Hotel Araxa offers three types of rooms: single, double basic, and twin with balcony. Their rooms are clean, comfortable, and cozy. Some singles have balconies and some do not, I recommend the one with the small balcony. The twin room with balcony has a large, spacious balcony with lovely views of the pool and garden.
Location
This hotel is outside the city center (about 30 minutes from the cathedral), but it is still well-located. It’s near Castell Bellver, one of Palma’s most iconic buildings and a great place to watch the sun set over the city and the Palma Bay. Also, it’s a short walk from Pueblo Español, an open-air museum that showcases the best of Spanish architecture. It’s an easy 15-minute walk to Santa Catalina, a trendy neighborhood with plenty of bars and restaurants as well as a nice market. The nightlife of Paseo Marítimo is also nearby.
On this side of the city, you’re closer to beaches like Cala Mayor, Playa de Illetes, Portals Nous, Punta Negra, and Palmanova.
Activities
Hotel Araxa offers an outdoor pool that is larger (and in a more beautiful place) than any you’ll find in the city center. Located in front of the hotel, it is surrounded by the garden and trees, but there is plenty of sun. It is open from April 15th until the end of October. There is towel service and sunbeds with and without umbrellas. Additionally, there are tables near the restaurant under the hotel’s awning where you can enjoy views of the pool and garden from the shade.
The hotel also offers a large gym to its guests. For a small, boutique hotel, this was perhaps the largest and nicest hotel gym I’ve ever seen. It just kept going. There were three different sections in their own rooms with cardio equipment, weights, etc.
For an additional charge, you can enjoy the hotel’s well-equipped and spacious spa, which I recommend. There are two saunas, one infrared and one traditional, a jacuzzi, and an ice cave. They also offer a selection of massages.
During the summer, unwind and relax to the soothing melodies of a live pianist in the garden, every Friday evening at 8 PM.
If by some chance you get unlucky with bad weather, there is also a selection of board games to borrow and a small multilingual library.
Local Tips
If you’re staying in this part of Palma, lovely beaches and calas are a short bus ride or drive away. The closest sandy beach is Cala Mayor, but if you go a little bit further, Palmanova and Magaluf Beach are even nicer. Palmanova is popular for volleyball so there usually are quite a few nets, but the weather conditions are always surprisingly nice even if it’s windy and cloudy in Palma proper. Magaluf Beach is even prettier and there is less volleyball. As far as calas go, Punta Negra is underrated. Playa de Illetas is gorgeous but can quickly get crowded. However, it is a great spot for a sunrise swim.
If you happen to be staying here around the holidays, Pueblo Español also has a cute Christmas market.
Most Authentically Mallorcan Budget Hotel: Hotel Born
Experience the best of both worlds by staying in Hotel Born, located in a gorgeous 16th century palace in the heart of the historic and commercial districts. This hotel has a traditional, romantic, old world feel with modern comforts. It’s tucked away off of Avenida Jaime III and Passeig Borne, two of the main shopping streets, making it steps away from the beating heart of the city but without sacrificing tranquility.
The hotel lobby is beautiful and cool with marble floors, columns, and ribbed arches. It feels very luxurious. Additionally, the hotel has a typical Mallorcan patio (or courtyard) in the center of the property which is home to their restaurant.
They offer a few different styles of rooms at different price points from the most affordable double basic to their premium room. All the rooms are decorated with typical Mallorcan furniture and offer complimentary tea, coffee, and bottled water. Some rooms have courtyard views and some have street views. Please note that this hotel is located in a 16th century building and does not have an elevator. All rooms are accessible only by stairs.
Location
You really can’t beat this location. It’s steps away from the shopping district, but very much is located in the historic district on a quieter street. The tree-lined La Rambla is mere minutes away, Santa Catalina is a short walk down Avenida Jaime III, Passeig Born is nearly at the doorstep, you’re a short, shady walk down Born away from the cathedral and Parc de la Mar. There are a plethora of great restaurants and bars. It’s well-connected by bus. It’s a prime location for a city break. And nowhere is that far from the beach. You can easily take EMT Bus 4 to Ses Illetes, a selection of three lovely small beaches/calas near Palma.
Activities
If you’re staying at a hotel this central, the location is the activity. However, the hotel does offer massages and you can have a nice meal or breakfast in the airy courtyard.
One of the closest attractions if you want to explore a Mallorcan manor house is Can Balaguer. It is a two minute walk. Besides being a gorgeous museum and building to give you insight into Old Palma, sometimes they host cultural events. If you’re interested in culture, there are also the nearby CaixaForum Palma and Casal Solleric which host a variety of arts and culture exhibitions. The Es Baluard Museum of Contemporary Art is less than ten minutes away.
You’re only a short walk away from the best shopping in the city. Stores like Zara, Mango, Corte Ingles, H&M, C&A, Oysho, Louis Vuitton, Stradivarius, Massimo Dutti, and different boutiques are all at your fingertips.
The Palma cathedral and the Royal Palace of La Almudaina are just a short walk down shady Passeig Born. I also recommend spending some time in the gardens below the palace (s’Hort del Rei).
Local Tips
If you feel overwhelmed by choice, here are my recommendations for a hot, summer day to make the most of it. In the morning, you’re spoiled for choice for breakfast. Mistral Coffee is a cute specialty coffee roaster right down the road. If you’re in the mood to get breakfast to-go to either bring back to the hotel or for a morning beach day, your best options are Forn des Teatre, a Palma icon specializing in Mallorcan pastries and baked goods, or Fika Farina, a Swedish bakery that is home to amazing cinnamon rolls. Neither have seating. Morning is a great time to wander.
If you’re visiting in the summer, the middle of the day is hot and you’ll be best inside. That’s your time to either get blasted by AC while shopping till you drop or tuck yourself away in a museum or art exhibition. There are also plenty of options around for a nice lunch or menu del dia.
The late afternoon is for the beach. It’s still hot, but beginning to cool down. EMT Bus 4 has a stop near the hotel and can take you to Cala Mayor or Ses Illetes, which are great options. But Estació Intermodal is also nearby (15 minutes walking) and has buses that can take you all over the island.
For dinner, there are lots of great restaurants and tapa places in the immediate area (Bar España, Bar Deia, and Restaurante La Cueva to name a few). If you want a more quiet drink after, the area between Passeig Born and Parc Sa Feixina is really nice. If you want more of a trendy, young vibe, Santa Catalina is the place to go after dinner. From there, you’re well-located to see where the night takes you.
Best Budget Hotel In Palma Old Town: Santa Clara Urban Hotel & Spa
Travel back in time by staying in the heart of Palma’s Old Town at Santa Clara Urban Hotel and Spa, a modern spa located in a 17th century building that blends historical charm with modern design and convenience. The hotel is tucked away in the narrow golden stone streets of historic Palma, but the front lobby is bright, airy, and modern.
The rooms are clean and comfortable with rustic stone walls, high ceilings with wood beams, and sleek, modern features. All include spa access. They offer double rooms, superior double rooms, suites, and junior suites.
I have a soft spot for Santa Clara as it was where I spent my first night in Mallorca when I first moved to the island. The staff were lovely and helpful and the rooms were quiet and soothing. It was well-located for beginning to explore the center for the first time.
Location
Santa Clara is located in the heart of Palma’s Old Town, a short walk from the Palma beach, the cathedral, and the city center. Besides being well-located for the must-do activity of getting lost on purpose wandering the narrow, historical streets, it is centrally located to everything in the center. The shopping and art galleries of Passeig Borne are nearby, lots of historical churches are tucked away, the Arab Baths are a short 3-minute walk, and Plaça del Cort and its ayuntamiento are less than 10-minutes away just to name a few things.
This hotel is not very car friendly (only resident vehicles are allowed in Old Town), but taxis can get you and your luggage there. Also, the airport bus stop isn’t too far of a walk. To explore the island further, there are nearby bus stops that can easily take you to Palma city beaches like Ciutat Jardin and Can Pastilla. The Estació Intermodal is about a 15-minute walk from the hotel. From there, you can take TIB buses all over the island.
Activities
Get pampered and unwind at the hotel spa that features a jacuzzi, sauna, and steam bath. They also offer a selection of massage treatments to choose from. Additionally, you can have a drink on their terrace and soak in the views of historic Palma.
The location is largely the activity. This hotel positions you perfectly to explore the best of Old Town. I highly recommend getting lost on purpose and exploring the narrow stone streets. You never know what you’ll stumble onto. However, if you need a bit more guidance, be sure to check out the Arab Baths, the cathedral, the ayuntamiento in Plaça de Cort, C’an Joan De s’Aigo, Parc de la Mar, the Mallorca Museum, and the views from Mirador Baluard del Princep. And if you go just a bit further past the cathedral, you’ll be in a prime shopping district in Passeig Borne.
Local Tips
If you stay in this hotel, you need to go to C’an Joan De s’Aigo for breakfast. There are three locations, but the original is minutes away from Santa Clara. It’s an emblematic café in Palma with a long history and incredible Mallorcan pastries like ensaïmada, coca de patata (must be eaten with hot chocolate), cremadillos, gató, and more. If you’re wandering by in the afternoon, stop by for an ice cream. There are no wrong decisions. The building is cute and cozy. Also, a sunset walk from Mirador Baluard del Princep to the cathedral at sunset is a must-do.
Best Budget Hotel Rooftop: Hotel Almudaina
Hotel Almudaina is bright, airy, modern, and centrally located on Jaime III in the heart of Palma’s shopping district. It offers all the conveniences and comforts of a modern hotel.
They offer a wide variety of hotel rooms to suit your needs. There are single rooms for the solo traveler and single economy rooms for the more budget-conscious solo travel as well as double, triple, and quadruple rooms. Their superior rooms are more luxurious double rooms with great views of the city. All are clean, comfortable, and spacious.
The hotel offers a buffet breakfast featuring local produce and products.
Location
If you want to be central to the best shopping in the city, trendy and delicious bars and restaurants, Old Town, and be well-connected via public transit, this is the hotel for you. Strategically positioned on Avenida Jaime III, it is difficult to be more centrally located than Hotel Almudaina.
Excellent bars and restaurants are at your doorstep along Jaime III or Passeig Borne. Also, Santa Catalina is a short walk away across Torrent de Sa Riera with even more trendy bars and restaurants to choose from. You’re minutes away from the best stores in Palma, ranging from popular stores like Zara and Mango to the multi-level Corte Ingles department store to luxury Louis Vuitton to sporty Decathlon (a must-visit for any beach supplies you forgot). Additionally, the streets between Passeig Borne and Parc de Sa Feixina are filled with art galleries and even more restaurants and bars.
The cathedral, Palace Almudaina, and S’Hort de Rei (the Royal Gardens) are minutes away, as is the rest of Old Town. You’re also near the Paseo Maritimo which is a lovely walk along the harbor. The Es Baluard art museum and Parc de Sa Feixina is also a close walk. You can walk everywhere you need to.
Activities
The jewel of this hotel is the Sky Bar. It’s the perfect place to enjoy a drink and soak in some of the best views of the city and the Palma Bay. I highly recommend coming here for sunset. However, I wouldn’t come here when you’re in a rush. The service has a reputation to be slow. But the views from the terrace are incredible.
Local Tips
There are a plethora of bars, restaurants, and cafés in the immediate area surrounding the hotel, so here are some of my recommendations. If you want to go to a cute café, Mistral Café is great and also is laptop friendly. Café Poupette is also a lovely place to enjoy a café con leche in Parc de Sa Feixina. Bar Deia and Restaurante La Cueva both have delicious Spanish tapas. Bar Abaco offers a really unique experience and is perhaps the prettiest cocktail bar in Palma with its opulent decor and gorgeous courtyard.
Additionally, if you happen to book during holidays that would involve a parade in Palma (Carnival, San Sebastian, Dia de los Reyes, etc.), plan accordingly. This hotel will either be an amazing location if you’re wanting to be right in the middle of everything, or it could get a bit loud and be difficult to access. Most parades go down Avenida Jaime III, right in front of the hotel. For instance, there are concerts and DJs in the street during San Sebastian. If you’re wanting to participate fully, this is a great, central location. If you’d rather avoid the crowds and music, perhaps choose a different hotel during those dates.
Best Pet-Friendly Budget Hotel: JS Palma Plaza
JS Palma Plaza is a newer, modern hotel located in Plaza Madrid. It offers quiet, comfortable rooms and all the conveniences you need to enjoy your city break. The hotel is known for its friendly and dedicated staff, comfortable and clean rooms, and accessibility to the city.
The hotel offers a gym, spa, and rooftop pool for the use of its hotel guests. The gym appears to be fairly well equipped. The spa includes a small heated pool, sauna, relaxation area, and sensation shower. The rooftop pool is more for taking a dip to cool off than swimming, but you also have views of Castell Bellver. Hotel guests rave about the hotel breakfast, saying it is a great value.
There are a selection of double rooms with different views and features. Some have balconies with views of Sant Sebastiá Church, others have window views of Castell Bellver. Some are more accessible, and others are more spacious. There are also junior suites.
This hotel does allow small dogs free of charge with advance notice (up to 7 kg, around 15 lbs).
Location
This hotel is a bit more of a walk than some of the others on this list, but it is still quite convenient. The shopping district along Jaime III is only about a 10-15 minute walk away. The restaurants and bars of Santa Catalina are also a similar distance. The cathedral is about 25 minutes away on foot.
It is well-connected by bus as well, both EMT city bus and TIB. One of the main TIB bus stops to explore the west side of the island is Plaça del Progrés, which is only about a 10-11 minute walk. From there, you can easily get to Punta Negra, Palmanova, Magaluf Beach, Calvía, and more.
Activities
The hotel offers a gym, rooftop dipping pool, spa, and restaurant for hotel guests. Additionally, you can book massages at an additional cost.
In addition to the other activities mentioned with other hotels, this hotel is located near Parc de Sa Riera. Also, if you’re a football fan and want to cheer on RCD Mallorca, it’s only a 30-minute walk or 22-minute bus ride from Son Moix Stadium.
Local Tips
If you stay in this hotel, some of the best ice cream in Palma is only a 6-minute walk away. Che Gelats is Argentinian-style ice cream and they have a variety of fun, South American-inspired flavors like chocotorta, dulce de leche, and mango in addition to more traditional flavors. Don’t forget to try their chocolate bath (a hard chocolate shell). It’s the closest thing you’ll find to Dairy Queen in Palma, but it’s so much better.