Pension Paquita Reviews
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Nobody here speaks English, so be prepared to use Google Translate if you need something. Also, the key situation is very complicated, you need three keys to get in. It's also quite far from the center, although this isn't a problem if you can find the metro or take a cab (they're not expensive in Madrid at all). But you get a private room for about as much as the same thing would cost in a hostel, so it's not too bad overall.