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.

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

In our opinion, the four-star Hotel Meninas is the most tasteful non-chain establishment in Madrid—UN representatives and Gay Pride visitors agree.

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.

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.

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.

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

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.

Hostal Puerta del Sol is a gay-friendly hostal with a great attitude and an unbeatable perch just above Sol.

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.

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

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

Located in Salamanca north of the center of Madrid on the most fashionable street in the capital is the 17-room, family-run Hostal Salamanca.

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

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.

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...