If you visit a city like Madrid you know you will do a lot of walking and it will be fairly noisy at night. Knowing this we checked into our hotel knowing it was about 600 metres from the museums. This was a blessing as the hotel was spacious, clean and above all silent at night. We were visiting Madrid with friends who stayed closer to the centre. They paid more for their hotel accommodation, had a smaller room and on their last night checked into our hotel to get a good nights sleep! The staff were very pleasant and spoke good english.Would stay here again.

We visited madrid for 3 nights in January and stayed at the Agumar. The hotel is easily reached from the airport, just take the airport bus for 2 euros and get off at the last stop and the hotel is a few minutes walk from the bus station. Its also in short walking distance of the atocha renfe metro station which will get you anywhere you want to go. We had a 48 hour metro pass but walked to the main sites on the other 2 days so its easily done. The hotel itself is clean and the staff are welcoming and helpful. The rooms are comfortable and have some nice freebies (shampoo etc) The only problem we had was the room was very very warm which made it uncomfortable to sleep, although we set the air con at 16 degrees (the lowest setting) and told reception of the problem, nothing seemed to help. We did open the windows which made sleeping impossible due to the noisy street and night club below. All in all - a good base for an amazing trip.

We were planning to base ourselves in Madrid, and make day trips to Toledo and Segovia by train, so getting a hotel right next to the main Puerta Atocha station seemed like a good bet.

We found a 40% deal on Agumar Hotel on hotels.com so we went for it.

The hotel itself looked a little old and faded (but not so much that we didn't want to stay in it), and had a feeling of past splendour about it.

The room itself was very clean and well kept, and we had very good sleep in it.

We found the counter staff professional, helpful and courteous, but reservedly so (in a slightly business-hotelish kind of way).

Now on to location. It is a 10 to 15 minute walk from Puerta Atocha station as well as the nearest Metro station. That is very near when you are not carrying any luggage (as was the case when we were heading off to Toledo and Segovia for day trips), but is far enough to be uncomfortable when you are lugging your full load (i.e. checking in or checking out and going to or from Puerta Atocha station).

The area around the hotel is very suburb-ish and there isn't much to do in the way of eating or shopping around the hotel (though the excellent Prado museum, Reina Sofia museum and Thyssen museum are all within walking distance).

Overall, I thought that with the 40% discount, it was the most value for money that we got in terms of accommodation in our whole trip. That said, if there was no discount and we had to pay full price, I might have looked elsewhere.

The place was clean, not that close to the center, but not that far either, which for me justified the price. It was not too expensive, and we got it very last minute.
Amenities are limited, but it was not bad.
The location should not be too much of a turn-off as the metro (subway) system is good, and it was not that difficult to get to the different stations, and everywhere around the town. Two stations near the hotel on line 1 are Atocha Renfe and Menendez Pelayo.
If you decide to take the train to the hotel from the Airport and you get to Atocha - you really don't need to take a taxi - it is a 5-7 minute walk.
The room was not too big, but it was enough for us, and we were not spending that much time at the hotel.
Two of the beds were not bad for sleeping (twin size), the third one was an "arm-chair"-bed, which was not very good for the back.
The bathroom is large, and has most things needed, but there was almost no pressure for the water (on the 5th floor) - so showers took a while.
We were there in December, so the heating was on (good), and made the air a bit "dry", so we opened the windows to let a bit of fresh air in, which could make it a bit noisy from the traffic on the street.
When we were checking in the staff was not too friendly, in fact they seemed a bit preoccupied with other things (not sure what) but definitely not our arrival, and they did not speak English. The only information provided upon our request for a map was a brochure of attractions around town. On our check-out however they were very helpful, and friendly, and the reception was full of different brochures, and maps... so I guess it depends on who's at the desk.
There are different buttons to call the 3 available elevators, I don't know how this made sense... which was slightly confusing in the beginning, but overall - not a big deal.
The TV offered about 10-12 Spanish channels, in addition to English and French speaking news channels: BBC, CNN, CNBC, France 24.
There is a cafeteria - but we never eat there, so can't speak for the quality of the food.
Overall an average place.