"My wife and two older children stayed at this hotel on two different occasions. We had a great experience both times. The family rooms fit four people comfortably. Even though they are next to the street, they are well insulated and don't let any noise through. The staff is friendly. The building and rooms are clean. There is a laundromat on site ($3 Euros to wash and $3 Euros to dry. Detergent included. Can pay with card).
Now, the location can't be beat. Atocha station is located across the street, which makes taking trains to Toledo o El Escorial a breeze. The bus station is right in front of the hotel, so getting to Parque El Retiro o Paseo La Castallana is super simple. An Uber to the Plaza Mayor is $8 Euros.
I strongly recommend this hostel. I believe it was a great value for the money we paid for it."