My brother and his wife are currently staying at Hostal Persal
on Madrid's Plaza del Angel. Its an older 2 star hotel but very clean and neat (much much nicer than some of the dumps I've seen in Paris) More importantly it is a fabulous location, central to everything, I told them they couldn't have found a better location. Between Sol La Latina and Tirso de Molina metros. Only negative is the street our front is torn up, but that's happening pretty much everywhere in Madrid.