Best part of Madrid to stay in?

If you're interested in convenience to sights, you'll need to tell us what sights you're planning on, and the actual addresses matter in determining how close a hotel is to the Metro.

Fair point. We haven't begun to plan days by sights just yet. Deciding between the neighborhoods and not sure which is ultimately the best for us. We don't mind using public transportation to get around but don't want to be 30 minutes from everything either. Thanks!

We stayed on Plaza Santa Ana and thought it was the perect location. Close to restaurants, walking distance to museums. Loved it.

Anywhere near the Sol or Huertas area is tops for me. Close to Puerta del Sol, Plaza Mayor and other sights. Its easy to get a taxi to other areas and is an easy, brisk walk to the Gran Via.

We stayed in an apartment in La Latina and loved the neighborhood for convenience, access to a great tapas street and an easy walk to Plaza Mayor and the Palace and other sites and a not bad walk to the great museums or easy public transport there.

We stayed near Plaza Indepencia/Retiro Park and found it to be an excellent location from which to explore. It's walking distance to Salamanca but a little quieter if you stay a block or so from the circle. AC Recoletos and Petit Palace across the Retiro entrance might be good options.

Stayed at the Eurostar Plaza Mayor (2 blocks from the Plaza) for a week last February. Good location, nice room, helpful staff (they loaned me a tea kettle) and big/good included breakfast on the top floor. Not remembering the price, but it was reasonable. Metro is about 2 blocks away.

And, if you haven't heard, the Prado is free from 6-8 (at least when I was there last February) and is an easy 10-15 walk from the hotel.

Beautiful museum/beautiful and fun city.

I just left Madrid after 5 nights. I stayed just a few short blocks off Passeo el Prado and between Reina Sofia and Thyssen museums. Madrid's draw for me were the museums, green spaces and I wanted an apartment close to Atocha station ad I was arriving by train and had thoughts of day trips. If an apartment appeals, this was a great location with numerous little corner stores, a great patisserie for luscious tarts, green grocers, one block from metro and near many museums. Restaurants, both Calle Jesus and the other tapas streets are close by. All for well under $100 cdn. It was about an 18 minute walk to Plaza Mayor when I wanted to go there, but the central town sites didn't much interest me. I arrived to see the fiesta of Almudena (patron saint of Madrid) held in Plaza Mayor and then walked on to the same named Cathedral and visited the Royal Lalace next door. Another day headed up to Palacio de Gavira after a day wantering the parks. I heard at the last minite there was an Alphonse Mucha exhibit on there, so went my last night. I put 5-8 miles on my Fitbit most days. Due to traffic, walking was as fast as buses, and Metro s
Wasn't required the few times I left my neighbourhood. As mentioned Salamanca neighbourhood is interesting. It reminded me of Paris with its wide boulevards, expensive apartments and designer shops. Certainly not the 'big city' some people think Madrid is.
I think if you are willing to move out of the central core, you can see a nicer, slower aspect of the city. But if night life, or being out late is your preference, then central might be better.

Thank you all for the useful information! We are set and can now move on to planning our daily itinerary and day trips--I will post those questions in a new thread ;)