If you're looking for a cheap hotel in Madrid, don't discard the title "hostal" even though it looks like "hostel." The vast majority of "hostales" and "pensiones" are actually affordable, family-run hotels.

Instead of the bunk beds and huge shared rooms of backpacker hostels, these have single, double and triple rooms, often with a private bath, sometimes with a shared bathroom in the hallway. The following come highly recommended:

Hostal-Residencia Luz
c/ de las Fuentes 10, 3rd floor
Metro Ópera (lines 2, 5)
Neighborhood: Plaza Mayor
Tel +34 91 542 07 59
Price range: singles, doubles & triples from 15€ - 45€ per room per night
Of note: 12 recently decorated rooms, comfortable, TV, AC/heat, satellite TV

Hostal Paz
c/ Flora 4, 1st & 4th floors
Metro Ópera (lines 2, 5)
Neighborhood: Plaza Mayor
Tel +34 91 547 30 47
Price range: singles, doubles & triples from 32€-52€ per room per night
Of note: very clean, tranquil, safe, some private bathrooms, family-feel.

Hostal Plaza D'Ort
Plaza del Angel 13
Metro Antón Martín (line 1) or Sol (lines 1, 2, 3)
Prices range: singles, doubles and suites from 30€-110€ per room per night
Of note: beautiful, comfortable rooms, TV, phone, A/C, internet access, private bath in every room.

Hostal Don Juan
Plaza de Vazquez Mella 1
Metro Gran Vía (lines 1, 5)
Neighborhood: Chueca
Tel +34 91 522 3101
Price range: 24€ singles, 38€ doubles, 65€ triples per room per night
Of note: original art in every room, antique furniture, quiet street, very clean rooms, private bath, TV, heat/ air conditioning, and friendly service.

If you're looking for somewhere to stay in a guaranteed central location then check out our Gran Vía Hotel and Plaza Mayor Hotel pages with accomodation to suit all budgets.

Internet Guide:
Bed & breakfast