I highly recommend Hostal Tijcal which is just off Puerta del Sol adjacent to the Plaza Mayor. I have stayed there on a couple of occasions and have also recommended the hostal to friends who enjoyed it very much. You can opt for a private bath and each room has a TV and telephone. Itīs almost like staying in a hotel without the cost. Check out their website www.hostaltijcal.com . I donīt like staying in hostals site unseen. This one is beautifully tiled and clean. Of course, the Plaza Mayor and Puerta del Sol, as you have read, are very very close to many great bars and restaurants.

Oh, and the Prado Museum is pretty far from most of the night spots...if you want to "stumble home at night".

Good luck! smile

[ 12-19-2001: Message edited by: Chica ]

[ 12-19-2001: Message edited by: MadridMan ]