The Hotel Sanvy is a pretty goog deal. Its part of the NH chain and they have a couple of good properties.

We were in Madrid in Feb and stayed at the Palace. It is wonderfull. The best thing to do is to get Bancotel checks and the rate is only about 125.00 usd. Look on the internet site for bancotel.com and you book right on that site. We even got Starwood points with the checks. There are wonderfull hotels all over Europe also. Have fun. Email with any particular questions.

If you want something special try the hotel Gaudi (not a 5 star) and treat yourself with a junior suite. For USD 120 you get a big room, great bathroom in the center of town. And: your own spacious rooftop terrace with your very own jacuzzi. There is nothing better after enjoying Madrids nightlife than having your last drink on your rooftop.