Jesus, April (Semana Santa week) and May (San Isidro bullfights) are bad times for finding good
hotels offers in Madrid.
The best time are from June to September , you can find a weekend (saturday and sunday) hotels for euros 75 double room( for total /two nights) in 3/4 stars hotels.
The best for your money is stay in Madrid the weekend(saturday/sunday mornings and nights are great) and to go Toledo,Segovia,Salamanca,Caceres
etc on working days.

The 3/4 stars hotels in Spain are very good and usually they include the breakfast.Don´t worry about the location ,Madrid has a good metro red.

Luck
ABP