I just got back on the 1st from vacation in Madrid. We chose the cheapest most prime location of a hostel! I would totally recommend it as long as you are do not mind sharing a tiny bathroom with whoever else is staying there, and if you are on the street side, a noisy room on the weekends if you come in early!

But being young and adventerous I highly recommned Hostal Gislay to someone who is not picky, wants a great location( c/ carretas), and doesn't mind sharing a bathroom!

The woman who runs it is very very nice, we had a few great conversations with her! Although, she does not speak much English so this could become a problem for someone who does not speak the language at all.

http://www.spainhostels.com/links/links/frames.cgi?ID=607

Thanks for your review of Hostal Gislay , Raquel! I think it's the first (or one of the first) for them.

And yes, they do have good prices:

ROOMS PRICE
Single 20 €
Double 27 €
Triple 35 €

Saludos, MadridMan

How good is the bed or factilites as I am looking for something cheap as I am staying in Madrid for a week.