i HIGHLY recommend La Macarena:

Address Cava de San Miguel 8
Location Near the Puerta del Sol
Transportation Metro: Puerta del Sol
Phone 91-365-92-21

Fax 91-364-27-57

Room Information 25 units

Prices 63€ double; 84€ triple; 96€ quad

its in the middle of everything..shopping,
dining and nightlife. ask for a balcony room
for a great view.