My husband and I stayed at the Hostal Fontana for 3 nights at the beginning of October. The hostal is on the first floor of the building, we found the staff to be friendly and helpful. They helped us book our return taxi back to the airport and let my husband borrow their iron.
The room was small but clean, we booked a room with its own bathroom but I believe some of the cheaper rooms have a shared bathroom. It is cheap accommodation, and you get what you pay for, we were happy with our room, clean with a comfortable bed, and a really good shower, plus ideal location in the centre of madrid for very good price.
They offer a breakfast of sorts, muffins with a drink, but we didnt bother with it.
The main negative point is that the hostal is on a side street off the Gran Via, and at night this street is seedy, there are a number of prostitutes and people hanging around. So this wouldnt be suitable for singles, elderly, or families.
If you get time, go and see a Flamenco Show, we went to one off the Gran Via and it was BRILLIANT!!
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC