Hello My wife and I have a 8 hour stop over in Madrid 4am-12pm so does anybody know of a low price or medium price hostel/hotel that is close to the airport that we could ge a room at for a few hours so we don't have to lay on the airport chairs,and has a shuttle service.Thanks

I don't know if they offer a shuttle to the airport, but I saw this on travelzoo's site and the solmelia site says that the hotel is located next to the airport:

Solmelia.com is now offering a special rate of 50 EUR at Tryp Diana 4* (Madrid). This offer is valid for travel now through May 31. Exchange rates can fluctuate, but that's about $65* USD
Price per double room per night: from € 50 + VAT on a room only basis. Only available through solmelia.com

To Book: Click here for more information on the hotel and click "Book Room" to reserve online. Or, call 1-888-95-MELIA (1-888-956-3542).

-Linda

The Tryp Diana is nice; I have had lunch at their restaurant El Pato Mudo (the mute duck) and it was OK. But with as short a layover as you have, have you thought about Barajas Pueblo?? On the Square (Plaza there's a Churreria that's frequented by many airline crews: It's called Toribio's and I believe it's open from about 05:00 to noon (or thereabouts). There's a city bus that passes the airport and terminates there (M-101?) but it probably won't be running that early.

The Plaza is kind of like a small park complete with wooden benches to stretch out (or whatever). I had a 4-hour layover there once from about 07:00, called some friends & relatives and we all met at Toribio's for Churros con Chocolate. They also have very good Cafe con Leche, Churros and Porras.