Posada del Peine manages to offer affordable rates to travelers while maintaining its four-star status.

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

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

The Tijcal II isn't exactly chic, but it is cheerful. Everything is brand new, from the modern wooden furniture to the well-equipped baths.

Dos Castillas is dependable and reliable. While it's a good deal for the money, don't come here expecting luxury.

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.

Hotel Santander is known for its grandeur and Old World reputation— Old World, in this case, means you can forget about Internet access and cable TV.

Though a little bit expensive for Madrid, High Tech Petit Palace Ducal has a great location and unique design that make it a splurgeworthy pick.

This two-star hostal sits directly above Gran Vía, in a building jam-packed with other hostals.

Late night festivities are encouraged here, but raging parties on the streets of Chueca stop at the door—Hostal La Zona prides itself on class and safety.