I have recently returned from Spain and recommend Hostal Acapulco. It is located between Puerta Del Sol and Gran Via, overlooking a quiet street. The rooms are large and bathrooms are reasonably large. Staff speaks English, there is free internet in the lobby and they have an elevator. They don't have a website but will answer emails quickly. Rates are about 35-45 Euros. hostal_acapulco@yahoo.es.
_________________________
ellenoregon