Thank you so much for your replies. We have found somewhere that sounds promising....Sercotel Suites Viena on the Juan Alvarez Mendizabal lists a junior suite with a terrace for roughly €430 for the 5 nights which I think is quite a good deal. Any feedback on the area would be appreciated.

MadridMan, the last time we stayed in Barcelona we stayed at the Wilson Boutique Hotel and had a lovely big balcony with room for a table and chairs and then some. Lovely views too. Can highly reccommend it and only hope that our time in Madrid is as lovely as our visits to Barcelona.