This is where we stayed when we first arrived in Madrid. It is located on Gran Via which is like the “Times Square” of Madrid. It is in a building with a bunch of other hostels on each floor. But Hostal Miami was on the 8th. It was nice being on the top floor because it seemed further away from the never-ending noise of the nightlife; which helps when you’re trying to catch-up on jet-lagged sleep.
There are a lot of hostels in Madrid; all very affordable if you are a single person, with not much luggage, willing to sleep with 8+ people (or not sleep). You can even find hostels that will feed you breakfast for free, some have gyms, others tours and activities, etc. They’re great and you can meet some really cool people that way (or some creeps too).
We chose Hostal Miami because we wanted a cheap private room with our own bathroom for at least a week while we looked for housing. It cost us about 14 euros per person per night (a bit higher on the weekend) and there were no added perks; although they cleaned our room and changed our towels/ sheets every day.
If you are looking for an affordable private room in a central location then I would highly recommend Hostal Miami @ Gran Via, 44