Hi Billy:
I have never stayed at that particular hostal, but did stay at one next to it, Hostal Buenos Aires, and it is in a very convenient area. The Gran Vía is one of the main highways of Madrid and you are close to everything - Plaza de España, Puerta de Sol, el Prado, Plaza de Callao, Plaza Mayor, el Retiro, ... there are also bus and metro stops everywhere, and a special taxi lane. The Gran Vía itself is really interesting, there are many restaurants and cafés, not to mention movie theaters and shops. As for safety, I have never had any problems in that area, the only thing that I or anyone else would probably tell you is the usual - no matter where you are, always keep an eye on your belongings and surroundings.
