I will second the vote for Adriano, having stayed there a dozen or more times. It is right in the middle of the "entertainment" area with movies, bars, restaurants and theaters close by and provides great service and facilities for the price. Taxis in Madrid are relatively inexpensive and the Metro is dirt cheap, so mobility will be no problem.
You can check out my (and others) opinions here:
Adriano Review Also, do your own search of Madrid
Man.com. I am sure you will like what you see!
Matt