The 4-Star Gran Hotel Conde Duque (web: http://www.hotelcondeduque.es/ ) is located next to the San Berardo metro stop which is just west of the BILBAO metro stop on the Calle Alberto Aguilera. This is on the northern edge of "Old Madrid". The distance from here to, say, Puerta del Sol IS walkable but it's a lonnnng walk and not one you'd want to do late at night. In my opinion, it's not the ideal location but IS outside of the tourist zone so maybe that's a benefit for you. OR NOT(?). It's about equidistant from the Puerta del Sol as the Atocha train station is from Puerta del Sol.

You can see a photo of their address on the QDQ.com site HERE (choose the SECOND "Plaza del Conde Del Valle De Súchil" link) and a map of its location and take a virtual stroll around the neighborhood. There's also http://www.ViaMichelin.com - very good mapping site.

As for it being close to the main attractions, it's really not. That is to say, it's "CLOSE" in the relative sense of the word if compared to locations further outside the old center, yes, but you'll require some kind of transportation for most things to see. You could walk to the Templo de Debod and the Plaza de España but the Plaza Mayor, Puerta del Sol is quite a bit farther. And Huertas, Retiro Park, Puerta de Toledo, and the Puente de Toledo for example, would make you exhausted reaching them onfoot. Most everything is accessible by metro, though, but you probably won't want to use them late at night if you're too far away. Taxis are everywhere, however, and are much more affordable (even with the current, terrible exchange rate) than those in the USA and probably even cheaper for people from the UK like you.

This hotel's location is not the kind of place you'd want if you'd like to walk out your door in the morning and reach anything quickly, within a few blocks, or enjoy some of those great cafés for breakfast in the Old city center.

Best of luck and enjoy your time in Madrid!

Saludos, MadridMan