Madrid Atocha Station Hotel?

I don’t stay near the station when I go to Madrid, but there are plenty of hotels in that area. The area itself is fine to use as a base for a couple days. Retiro park is essentially across the street, the Prado just down the street, and the Reina Sofía is across the street. The Plaza Mayor is a 15 minutes walk away while the Royal Palace is an additional 15 minutes.

I stayed at Hotel Catalonia Plaza Mayor and we walked everywhere. From my trip report:

Very nice hotel and breakfast and they upgraded us to a superior room. I also
liked the location of this hotel – we were able to walk everywhere and
the windows were double glazed so even though we were on a main road
there was no traffic noise in the room.

The area around Atocha is fine. You are very near the art museums and El Retiro park. Easy walk to museums and park. Lots of hotels and restaurants in the area. I have stayed twice, just one night each time, at Hotel Mediodía which is right across the street from the Atocha station. It is a big hotel and seemed to cater to many tour groups but I chose it for its convenience since I was only passing through Madrid. It backed up to the Reina Sofía art museum and there was a metro station, Estación del Arte, right next to the hotel. You can use the metro to get around the city and having the train station right there is convenient for daytrips or moving on to your next destination.