....just got home after three nights in Madrid. Don't hesitate to take the Metro from the airport, its clean, frequent, tickets cheap (1 euro for one journey), ticket machines in English, easy to navigate.
La Fontana Hostal is clean, smallish rooms, TINY ensuite shower room. Friendly staff, open 24 hours a day, they were happy to look after our bag on our last day after we had checked out, but before we left for the airport. Beds made/room cleaned/towels replaced daily. Radiators and also spare blankets in the wardrobe. Ceiling fan for the summer. Very central position, (practically on Grand Via) easy to find and you can pretty much walk everwhere from it. Slight downside were the 'working girls' outside, although these are to be seen day and night on a few different streets around the city.
We had a balcony and luckily there was a double glazed door as there is a lot of noise from the street (I think there were some rooms that faced 'inwards' if you prefer). Spanish multi channel tv too.
All in all, good value for money, nothing to complain about. We paid 50 euros per night for a double room (Nov 05).....
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