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

For travelers with wide eyes and a slim budget, Hostal Residencia Helena is a good choice for its high-rise perch.

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

Hotel San Lorenzo, perched just off Gran Via, impresses to the nines with its country style and bargain rates.

There are dozens of family photos from across the decades lining the lobby's halls and walls. It will certainly make you feel right at home!

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.

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

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

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

If you're not opposed to shelling out a few extra euros, then check into the three-star Hotel Regente. It's worth it!

An historic establishment that can boast Ernest Hemingway as a former guest, the Tryp Gran Vía is a safe, moderately-priced bet.

Sleek and chic Ateneo provides 38 impressive three-star rooms just north of Puerta del Sol.

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.

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.

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 Nuria's location, on the bustling Calle de Funecarral, is fantastico: it's minutes from Gran Via and surrounded by the chic stores and cafes that make Chueca the 'it' neighborhood.

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.

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

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

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.