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Madrid - Accommodation Location

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We, along with 2 other couples have booked 2 tours, one for Spain and one for Portugal. There are about 6 days between tours so we would like to spend an additional 3 days in Madrid after the tour ends. I am looking for a rental for the 6 of us and since I am totally ignorant about Madrid I am hoping someone can give me some insight.
Our tour ends at the Ayre Grand Colon and I was hoping to find something not too far from there but don't really know what district to look for. It did mention it is not far from the Retiro, if that helps.
Also, we are all arriving at different times as we are coming from 2 places in Canada, and 1 in the US. We will be arriving the day before our tour so will need to find our own way to the hotel from the airport. What is the best (most economical) way there?
Thanks in advance for your help. I am sure I will have lots more questions. :)

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