Not sure about the prices - you'll have to visit their websites to get current rates - but there's also the gay-focused Hostal Gay Puerta del Sol which overlooks the construction site of Puerta del Sol. In Chueca area there's Hostal Gay Sonsoles , Hostal Gay Odesa , Hostal Gay La Zona , and Chueca Pensión . You may find reviews of some of these here in this forum category by conducting a SEARCH and using the appropriate keywords.

Regarding the need for air conditioning in mid-june, for me, I'd say yes. Others might have their own, different comfort-levels for temperature. I was here last June and I was hot, but I have a lower-temperature-comfort-level. I used the A/C a few times while taking an afternoon nap.

Saludos, MadridMan