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Hotels or Apartments in Madrid and Barcelona?

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Just booked 9 day trip to Madrid and Barcelona for our family of 4 including 2 teenage boys. Roughly 4-5 days in Madrid and same in Barcelona in late August (I know it will be HOT, but this is the only time we have to travel). We're considering apartment rental over hotel stays. We prefer "less touristy" accommodations, but still centrally located to sites and transportation. We'd either like more typically Spanish hotels (not major chains), or apartment rental similarly located. Thinking apartment may better accommodate the 4 of us (rather than possibly needing 2 hotels rooms).

Thoughts? Apartment and/or hotel recommendations welcome! Thanks.

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