My wife and i are traveling to Madrid for the first time in May 2019. We are staying for four days and are looking for hotel recommendations. It's just the two of us and we normally stay in Airbnb's when traveling with another couple.
Plenty of hotels at different price points throughout the city. During our last two visits we stayed at Hotel Europa at the Puerta del Sol.
Daily budget?
If you don't mind a smaller room and a desk staff that may not speak English, I had a great inexpensive stay at the Hostal Acapulco. Note that an hostal is not a hostel - it's the Spanish term for what is, in other countries, a guest house or pension. In 2015, I paid €53 per night for a single! The location is great, right in the center, but on a quieter street, and next to a place serving breakfast (no meals in the hostal itself).
http://www.hostalacapulco.com/ (if it doesn't show up in English, click the British flag).
If you're looking for a more standard hotel at a higher price (still quite reasonable), another poster on this forum (steven, whom I met at our New York Rick Steves Travel Group) recommended Hotel Liabeny: https://www.liabeny.es/en/. He said he preferred it to the often recommended Hotel Europa; I haven't stayed at either one.
A couple of years ago my husband and I stayed at the Hotel Europa https://www.hoteleuropa.eu/en/ and found it to be centrally located, nice and reasonably priced. We're thinking of going back to Spain in 2019 and we would stay there again.
I've been twice and stayed in the Europa both times. I really like the location, super convenient with metro and cercanias station and HOHO bus line, nearby supermarket and walking distance to some of the best sights.
On my third visit, I had planned to try Harold's recommendation, comfortable that I am familiar with the neighborhood. I made a reservation and had good responses from the manager. In the end, I changed my plans and dropped Madrid from my itinerary.