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Hotel decision: Only You or Las Letras Gran Via

Hi there, we're traveling to Spain in late October: 4 days in Madrid then onto Servilla. We've two hotel recommendations: Las Letras on Gran Via and Only You Hotel in Chueca. Leaning towards Only You because the hotel itself seems perfect. Plus we like the idea of a neighborhood over a touristy road that may have contraction going on. However, while we're city people that walk a lot and know how to navigate trains & buses we don't want to be too far from museums and other sites. Las Letras seems a little closer. We're a 40something couple, have a good budget and are BIG foodies. Are OK with touristy places to visit but not to eat or shop. I know we're overthinking on this, when we travel we cannot help it! Thoughts?

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Only You all day every day. Great neighborhood with great neighborhood everything!