Rooms in Madrid

I stayed at the Hostal Cervantes in March for $55 euro a night and the location was fabulous. It's a simple place but it has everything you need.

http://www.hostal-cervantes.com/

The two I usually use in Madrid are the Hostal Cruz Sol and the Hostal Santa Cruz. Both are in the same building on Plaza Santa Cruz, which is just two blocks from Sol, and just steps from Plaza Mayor. But because they're just off the main path from Sol to Plaza Mayor, they're very quiet. Hostal Santa Cruz (www.hostalsantacruz.com/ingles/index.html) goes for about 53 Euro/night for a double, while Hostal Cruz Sol (www.hostalcruzsol.com) goes for 50 Euro/night. There is an elevator in the building. If you go to maps.google.com, you can get a map/satelite view of the location....just copy and paste these coordinates. The building housing the hostals is at 40.415346,-3.705622 . Basic, but clean and modern accommodations.

Hotel europe right on the placa de sol in the center clean and good location

I stayed at Hotel Abalu, which is near the Gran Via. Not in the touristy part of town but close to 2 metros. Affordable and clean. Hotelabalu.com