While the hotel's exterior won't wow you, the modern, comfortable rooms and super-convenient location are sure to make a positive impression.

The mammoth Hotel Asturias, located one block east of Puerta del Sol, offers a whopping 175 rooms, almost all with private balconies overlooking the street.

This centrally situated, reliable hotel is a dream come true for risk-averse travelers ... You can get shuttle service to and from the airport, and it's located in a popular shopping area, just off the pedestrian-only Preciados.

The Hotel Casón del Tormes is a lovely three-star hotel, offering 63 spacious and attractive rooms.

Colors Hostel is run by a vivacious Argentinean man and is comprised of 9 rooms. Four rooms have balconies that overlook Fuencarral, a trendy street strung with designer clothing shops leading all the way to Chueca.

Located along the Gran Via, the Hostal Hispano-Argentino provides standard rooms with amenities galore for a fair price.

A. Nebrija is a small, six-room family establishment we regard to be the best bargain in Madrid, complete with Old Spanish charm.

It's all the little details, from the star-spangled shower curtains to the super friendly staff, that make any day at the Acapulco a sunshiny one.

In a building stacked with hostals in the Huertas district, the stealthily-attractive Adriano sits just waiting to be discovered for its unbeatable style and rates.

Hostal Alaska is widely recommended. In addition to being one of the best bargains in town, it's also an inarguably good place for history buffs.

We like Hostal Asunción for its non-touristy location, plus rates are reasonable for services rendered, and include free Wi-Fi.

The attractive two-star Hostal Barrera sits long Calle Atocha, within walking distance to the Museum Triangle and Atocha station.

Renovated rooms have their own personal computer with Internet access. Plus, they are f-r-e-s-h, with new doors, new beds, big TVs, AC...

The Hostal Cruz-Sol has it all—rock-bottom prices, comfy rooms, and a cool and convenient location. It overlooks the Plaza de Santa Cruz and is just a minute from Puerta del Sol.

The Hostal Dominguez is a respite from the buzz of the Chueca's trendy bars and clubs.

Hostal el Catalán is to hostals what Levi's is to jeans—it's an established brand that has so passed the test of time that there's no questioning its consistency or value.

Gonzalo won't disappoint for location or facilities. Its low rates never fluctuate, even during high season.

La Fontana undercuts its two-star bracket contemporaries with friendly service and design savvy.

This cozy, tastefully decorated two-star is the perfect place for those who don't want to travel very far from their room to be near the action.

Walking into the lobby of Hostal La Plata, a quiet family-run pension on the Gran Vía, you are immersed in the wonderful world of Cervantes.