Smaller hotel located about 3 blocks from the Puerta Del Sol. We had a corner-view room with a king bed, 3 small balconies, small fridge, nicely updated bathroom and it was about $98/night! Clean room, comfortable bed. Totally recommend. It IS a walk-up hotel, so plan on 2-3+ floors of stairs.
We recommend the Hotel Europa, plaza del sol. Great location. RS tours stay here. They were very accommodating and went beyond. We stayed at start of tour which ended in Seville. We flew home out of Madrid, so booked one night before the homeward leg. They held our extra bags for us and upgraded our room when we arrived from Seville.