I stayed at the
Hostal Alhambra at the end of June for two nights with my wife and two daughters. We booked a family room which was spacious and had five comfortable single beds. The cost was 12840pts per night which although is not cheap, but when you look at the location of the hostal, it couldn't really be more central.
It is situated on Espoz y Mina which is a road off the Plaza Puerta del Sol. The metro station is two minutes away (one of those minutes is taken to cross the road)and literally hundreds of restaurants and bars are within a few minutes walk.The Madrid Vision buses for all three routes leave from Puerta del Sol, which is a very good way of seeing the city as you can hop on and off at your leisure. The Plaza Mayor is five minutes walk away and Retiro Park and the Prado Museum are within easy walking distance.I haven't been to Madrid before but in comparison to some hotels we have stayed in before in Paris, Barcelona etc, this one is quite reasonable. You can book on line though I have forgotten their web address. Minus points are that there isn't a lift and the air conditioning is controlled by the staff. I would still recommend this hostal
[ 07-03-2001: Message edited by: MadridMan ]