Fair enough.
Reasonable would probably be around $120 per night or thereabout (less would be great).
In Madrid we will be doing the usual museus, Royal Palace and in Barcelona - Gaudi and Gothic quarter.
We will be doing a fair amount of day trips out of the city as well in both places.
We love doing walks around town just enjoying the atmosphere of the new place. On our last trip we visited Paris and London - in Paris we spend pretty much every night going around Latin quarter and LOVED Paris because of it. In London we stayed right next to Victoria Station and area around us was fully residential with nothing going on at night - as a result we got in early and did not enjoy London even close to Paris.
I would love to find an area like Latin quarter in both Barcelona and Madrid.
We also LOVE Spanish cuisine and are really looking forward to doing tapa crawls and trying some genuine Spanish cuisine so areas near those are also very desirable.
Thanks!