Stated here in early April. While this accomodation is reasonably priced and only a few minutes walk from Plaza Mayor and Puerta del Sol, that it's only positive attribute.
The accomodation is located on the first floor of a building that is shared with private accomodation and offices of some local authority. During the weekend, the noise from the private apartments in the building was unbearable.

Pros:
1. Location as mentioned already.
2. Daily housekeeping, towels and soap/shampoos replenished, bed made up.
3. Free in-room wifi
4. Good security, well monitored with CCTV cameras.

Cons:
1. Room was very small dingy and in serious need of repair. Large cracks on ceiling and floor tiles. The room looked nothing like the photos on their website.
2. Lighting in the room was extremely poor and the only source of natural light was through yellow frosted glass windows in the balcony doors.
3. Balcony view was of a filthy insect infested courtyard with washing lines and rubbish bins. I could not leave balcony doors open at any time as the flies would come in.
4. Grotty bathroom with a tatty shower curtain and limescale encrusted shower head. No stopper for sink
5. Walls are paper thin, could not sleep properly. I didn't have to turn on the TV as I could hear the one in the room next door perfectly. Also noisy at weekends with drunken occupants of the appartments upstairs shouting and playing loud music at 4 am.

To conclude I would not recommend this place.

We were a little nervous staying at this hotel because of the previous reviews. However, we could not fault this hotel (well maybe the bedspreads were a little dated). We were put in the hotel across the road, if you stayed in the main hotel it appeared you did have to leave your key. In the hotel across the road you were given a swipe card and came and went as you please. Rooms were spacious (in fact double and 2 singles in our 'double room') HUGE bathroom, hot water, lots of storage space and the location is second to none. It is right next to the Sol metro station, a hop and a skip from Plaza Mayor and there is loads of shopping, eating, entertainment all on the doorstep of this hotel. You did have to pay a euro for the safe. Earplugs are a must (the corridoor seems to echo but no more than any other hotel we have stayed at). We had little contact with the hotel staff, but they seemed friendly enough. WIfi was good, elevator/ ramps were available for luggage, laundromat was nearby - can't remember the street but it's just passed Plaza Mayor and connected to a drycleaner. 5 euro per load. We stayed for about 4 nights - the furnishings are dated so if this is important you won't enjoy your stay. The price was very attractive. One final note, our room did not have a window.

Excellent location around the corner from Puerta del Sol, a short walk to Metro, a short walk (100 meters) to the night shuttle to the airport. The room was quite big for 1 person, though noisy at night when they were collecting trash in the middle of the night outside. Clean, wi-fi in room, no breakfast but plenty of food 24/7 everywhere around.

I made a reservation here through Venere, although I cancelled in time because I found a better place to stay for a lower price I found that they had charged my credit card for one night as soon as they got my credti card info even though Venere said they would not charge anything unless I missed the dead line for cancelling. I called this place to see why and this guy called Luis Miguel Pascual answered me very unpolitely and with a very xenophobic attitude told me that he did this because I was Ecuadorian and that Ecuadorians always cancell their reservations. He was very unpolite and rough. Nobody should treat clients nor people in general like this guy did. Latter I tried to fix this problem through Venere and amazingly this guy called me a thieve for asking 60 Euros instead of the 60 dollars he had charged. I told him that I never asked Venere more than what I was stolen and he answered me with insults full of bad words and racism for beiing South American. Even more, he dared me to go back to Spain and fight him. I still cant belive it but it is the truth. He is the only bad Spaniard I meet on my trip, the rest of the people where very kind.
I don not reccomend visiting this place, I am not the only person saying that this guys can steal you money or treat you badly please notice that there are other reviews confirming what I say about this hostal. Do yourself a favour and avoid staying here.