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Madrid hotel selection--down to two (or not?)

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Thank you all for your wonderful input! I would not make a trip without it!
We are planning a trip to Spain in May and have arranged accomodations in Barcelona, Granda and Seville. The last leg of our trip is Madrid and we need help selecting a hotel. We want to be within walking distance of most sites and have identified Atlantico Madrid and Hotel de las Letras as top choices. What we really want is a centrally located "charming" place to end our trip and these look like great choices, but not "ideal". Our budget is around $200 USD/night. I would love your input--either on the two we have selected or some we have not considered.
Thank you!

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