In Madrid I have stayed in the Vincci chain of hotels, touch more on the espensive side but found it to be nice.

In Barcelona we stayed in a 4 star hotel (3.5 ... ) but nice not to far from the Arc de truimph, called the Ayer Casp, it was away from Las Ramblas but within good walking distance to most things there.

Course my reply is way to late....

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Pics from my trip to Spain http://joeacosta.blogspot.com/