My husband and I will be be in Madrid Sept. 16-18. What can we expect to pay for a comfortable, clean room with air conditioning? We are backpacking and don't want anything fancy, but I don't think I can go hard core like I did 10 years ago! Also, we were wondering what part of the city would be the best area for us. We will be in Madrid to see the last few days of the Vuelta de Espana. We want to be in a lively part of town with fun bars and cafe's...someplace fun for a couple in their mid 30's. Any advice would be greatly appreciated.

I think you can find what you are looking for, but hardcore continues existing there. Lavapies is a funny neighbourhood, full of bares, hardcore pensiones and crazy young people. It is near to Barrio de las Letras, which is more classical (look for Huertas street in a map like lanetro.com) where people from Madrid and tourist use to go at night. You should not look for hotel or pension near Gran Vía Sreet (very dangerous for happy tourist at night). Look between Sol and Royal Palace, but avoid Atocha (same reason). Metro system and night buses work fine in Madrid so If you don´t find anything there, Barrio de Salamanca (Velázquez, Serrano streets) is a good choice, It is not far form Puerta de Alcalá an all that (15 min walking on averange). Avenida de America is the farest place you should look for hotel (20 minutes to downtown by bus). There are many hotels for 50€/double room-night with something called BancoHotel(banchotel.com). Enjoy!

Villa, thanks for all the good info!

If you're looking for a clean, comfortable room at a reasonable price then I would check out the hostales recommended here.

My choice is the Hostal Barrera . It's on C/Atocha (which I didn't find the least bit dangerous even late at night) near the Atocha train station and within easy walking distance to Huertas and the Plaza Santa Ana and the Paseo del Prado. It's 55€ for a double.

I also recommed Barrera, stayed there last year, good loacation, even thought its on Atocha it is not the least bit loud. its like 2 blocks walf from Huertas and convienent to subway locations.