Hostal Don Juan

This is a great hostal in a bustling and popular barrio of Madrid. The communal areas of Hostal Don Juan are simply staggering in their opulence and old-​world style — you will hardly believe that you are only paying EUR50 per night! The rooms are of a generous size and are all en suite, most have balconies looking out over either the calle de las Infantas or the Plaza de Vazquez de Mella. While these are nice, this popular barrio is incredibly noisy and if you have a choice in the matter, ask for a room which does not overlook the Plaza.
Reception is open 24 hours a day, which is helpful given the brilliant nightlife which Madrid has to offer. This is a prime downtown loaction and puts you just minutes’ walk away from some really interesting spots in Madrid.
A word of warning though, this is a neghbourhood much like Soho in London: cool and stylish but also notorious for prostitution and crime. In all my travels, the calle de las Infantas is the only place anyone has ever tried to mug me. Stay streetwise and don’t take risks that you wouldn’t at home, however, and you will find this cheap hostel to be a haven in Madrid.