I highly recommend the Hotel Suecia. Excellent location,is right next to the superchic Círculo de Bellas Artes (an arts society-café-film-theater complex). The hotel is a 4 star hotel and very modern furnishings. It is within easy walking distance to the Prado, Reina sofia and Thyssen as well as an easy walk to the city Center. There is a metro stop within feet of the Hotel and best of all a RENFE store is on the corner where you can purchase tickets easily.

C/ Marqués de Casa Riera, 4
28014 Madrid (Comunidad de Madrid)
MADRID
www.hotelsuecia.com

And best of all this hotel participates in the Bancotel scheme, which means if you are lucky and the dates are open you can stay for 50 Euros per night! Not bad.
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The world is a book, and those who do not travel read only a page.
--St. Augustine (354-430)