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Hotel in Madrid

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My husband and I (28 years old, energetic) will be staying in Madrid at the end of March. We are wondering what the best area to stay in a hotel is. We would love to get a hotel for less than $150 U.S. dollars per night, but still be in an area where we can see a lot of sights and be close to some bars and restaurants as well.

Any insight would be greatly appreciated!

Lori

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