Where is an inexpensive hotel to stay in Madrid, Spain for a family?

Answer 1

try the Hostal Castilla off of Plaza del Sol. I believe they have rooms of all sizes, it's conveniently located, and affordable - I stayed with 2 friends for 4 nights and we had no qualms about the place.
Only potential problem you might encounter is the staff might not speak English - it wasn't a problem for us, but something to keep in mind if you book there. Then again, things could have changed since we were last there a year ago.
Hope this helps.

Answer 2

Never been to Madrid but I use this site to book hotels everytime I go down to Spain, which is often.

http://www.bookings.es

They offer city maps and you just click on the hotel near where you want to stay, or lists by ratings or prices. Also have reports from others who stayed in that hotel. I have not found a better or cheaper website yet!

Answer 3

For a city of its size, Madrid boasts an exceptional number of world - class museums and galleries.See http://www.spain4uk.co.uk/places/madrid.htm for details of hotels etc.