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

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...

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.

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

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.

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

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

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.

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

The Hostal Persal is an 80-room Madrid classic, where an appealing minimalist aesthetic sets the tone.

Owners Gabriel, Marcelo, and Ramon have put a lot of time, hard work, and fresh paint into their endeavor.

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.

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.

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