Carlos V in Madrid is well located and runs about $100 a night. I went on a tour of Madrid with a family from Chicago who were staying there. They seemed happy, but plan on doing a Hostal stay on their next trip.

A classy restaurant that I really enjoyed in Madrid was Casa Santa Cruz located at Calle La Bolsa,12. It is in a XV building that was originally one of the chapels of the Santa Cruz Church and it gorgeous inside!! The food, wine and service are also great.