Reading all the posts regarding hostales in Madrid on here, and following the links, the price and standard seems to vary very little.

Which is the best AREA to stay???

I'm visiting with my g/f, we're both 27 and want to be near plenty of bars and restaurants although still be able to sleep at night!
The idea of staying in the historic part of town appeals aswell (should it?).

It's between Hostal Aresol (next to Puerta del Sol) and Hostal Chelo (near the Gran Via and Chueca) at the moment.
Hostal Lopez also looks good but appears to be a little out of the way on the map I'm using (right next to Museo del Prado ) - how far from the nightlife is it here?

I've read that Madrid is very compact, does this mean it's compact enough that wherever you stay you're near to everything?

Of particular importance is that we can stagger back to our Hostal rather than using a Taxi/Public Transport! :p

[ 01-04-2002: Message edited by: MadridMan ]