Salamana Spain lodging

In Madrid, there are two nice "hostals" (NOT hostels, but two-star hotels) in the same building on Plaza Santa Cruz, a few steps from Plaza Mayor and one long block from the Puerta del Sol...but off the main path between the two, so they're quiet at night. Both have been modernized over the past couple of years (owned by the same family) and are exellent value....around 50 Euro per night. Click here and here to see their websites. Go to maps.google.com and copy and paste the following coordinates into the search box to locate the building (40.41528 -3.70560). Use Satellite View and Street View to see them up close and personal.
In Salamanca, I've stayed at Hostal Cuzco, a nice place on two floors in a modern building. It's on Calle del Obispo Barbado Viejo right at the corner of Paseo del las Canalejas, which is part of the "ring road" that surrounds the old part of town, so it's easy to get to/from with a car. It's only a couple of blocks from the sites you'll want to see. I paid about 35 Euro/night. Copy and paste these coordinates into google maps (40.96052 -5.65972)

In Madrid, we stayed at Hostal Cervantes and especially liked the location near the Prado.

In Salamanca we stayed at Hostal Plaza Mayor also a great location just a block off of Plaza Mayor.

Both are in Rick Steves Spain Guidebook.