Hotel in madrid

Look at the Petit Palace chain. I consider it to be more boutique style than others. There are a number of them throughout the city. The Petit Palace Posada del Peine is right at the Plaza Mayor.

We enjoyed The Principal just off of Gran Via, near museums and Retiro Park.

Another thumbs up for Petit Palace Posada del Peine. I suggest that you sign up for the online Tripster club membership and book direct for the best price. My notes on my calendar:

"Hotel was originally founded in 1610 making it the oldest hotel in Spain. It was built by Joseph Posada to cater to riders and travelers. It was built next to stables. The lobby floor is the part of the original street. There's a famous unknown room 126 which is supposed to have secret passages. Also, they claim that there is a ghost in the building. Take home the souvenir comb (peine) and the skeleton key bottle opener."

We stayed at Cool Rooms Palacio de Atocha for 3 nights this past April.
It was one of the best hotels Ive ever stayed in.
It’s in a converted Palace. The rooms are very large and have lots of amenities. Another plus is that it is convenient to the Royal Palace and Plaza Mayor. ( walkable)

We just stayed at the Petit Palace Puerta del Sol. Be sure to sign up for the Tripster Club before booking for extra discounts. Location was great, just off Puerta del Sol and the metro, short walk to Plaza Mayor, etc. Fantastic breakfast, cheaper to add at booking than at the hotel. It was a bit annoyingly hip, with a sign "this is a hotel" above the door, and "this is a towel" on all the towels (eyeroll). But rooms were quiet, large, modern yet quaint.