Budget
Friendly family-run places & hostels
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One of the great things about Madrid is the countless numbers of hostales. Although they are increasingly being squeezed out by some of the cheaper mid-range hotels, these places are often excellent value, well located and friendly, family-run affairs.
Some may still have shared bathroom options, but most are ensuite and although they have few frills they almost always have air-conditioning and a TV.
Hostels are another good budget option, especially of you are travelling in a group. Again, there are a number of modern, centrally-located options on offer.