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

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...

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.

Providing 46 rooms along the central Calle Principe, the Villar is noteworthy for its rock-bottom prices and nifty wrought-iron elevator.

Situated along Calle Cruz, two minutes from the Puerta del Sol, the Marlasca is located in "hostal central." But what makes the Marlasca different is the professional service—there's always somebody at the reception desk...

The friendly Angela runs this 10-room show. Rooms and bathrooms ... are absolutely spotless, and the shiny white bedspreads and wooden furniture are new.

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

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.

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.

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!

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.

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.

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.

Located between Puerta de Sol and El Museo Prado, the Lisboa is certainly clean and comfortable, thanks to the friendly proprietor.

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.

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

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