Just back from four nights in Madrid at the Hostal Gonzalo. It was a great place to stay, spotlessly clean, comfortable, run by a welcoming family (their son speaks fluent English too) and in an excellent location. Calle de Cervantes is a quiet street but very near Huertas and Plaza de Santa Ana for nightlife and some lovely traditional bars (Casa Alberto was a favourite). It's also in easy walking distance of El Retiro, Atoche Station, the Prado and Reina Sofia.

The whole area felt very safe and friendly.