Hi there,
I have about 5 hours in Madrid with an early flight the next morning and guess I will have to stay by the airport. Does anyone know a decent hotel close to the airport and a great restaurant?
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Hotel and restaurant near Madrid Airport
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Trip Ideas

The new Madrid Hilton is fine. It has a decent restaurant, or you could take a take into the city, but seeing that you have an early morning flight, then the Hilton will probably be your best bet.
Thanks Robert2533; any suggestions on a wonderful tapas restaurant? I see that the Hilton provides complimentary shuttle service to the city center, so I want to take advantage.
If you are going into the city anyway, why not enjoy it and stay there? The Hilton's shuttle I am sure is limited, so at some point you will need a taxi or shuttle service anyway.
If you cannot coincide with the Hilton's shuttle service, this hotel is not convenient for getting downtown unless you shuttle back to airport and take public transport from there.
But the hotel is new and I am sure the nicest at the airport area.
However, if you are in the mood for some shopping near the airport and many restaurants to choose from, a hotel at the IFEMA area (Sofitel and Novotel come to mind) are in an excellent position giving you a Corte Inglés along with many eateries with sidewalk cafés, etc. Quite a pleasant area 3 minutes from Barajas.
I have stayed several times at the Sofitel. They also have airport shuttle they share with sister hotel Novotel. The rooms at S. are well appointed. This would be my first choice due to the surrounding area.. being able to walk to a shop or choose from several restaurants.
Madrid is connected here by public transportation without back tracking to airport.