Hostal Luz Reviews
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Not a hostel you go to to meet others, no common rooms... We found lots of hairs in between our new beedsheets when we got to our room - looked like it had not been changed. Location is great! Breakfast is included wich is also good, but it is a bit small (coffie, one glass of juice and one croassant/one slice of toast with jam/half a baguette with ham. You can hear everything through the walls, they are paper thin, but I think that that is usual for Madrid (or Spain as a whole).
I stayed there with my husband, we booked a private room and it was very beautiful, although a bit small, but we used the room just for sleeping as Madrid has so much to offer that we were out all the time. The location is excellent, 300 meters to Plaza del Sol and 400 meters to Palacio Real. The breakfast was great, at an old restaurant just in front of the Opera, from 8:30 to 12:00 so it's great also for those who like to sleep in. It has an elevator to 3rd floor. Recommendable!