It's just a cheap hotel, basically, usually family run. Some don't have private baths, but some do. It's just a different govt. housing category than a hotel and doesn't have the same standards. There isn't any specific category in the US with a name like that. I'd call it the same thing as a pension in Austria, for example, if you are familiar with the difference in pensions and hotels in Austria. They have their own govt star rating system (ie, a 4* pension is about the same as a 3* hotel).

There are real cheap pensions and pretty nice ones, but they don't have quite the same services as hotels and don't usually have 24 hr desk clerks, you may even be given a private key to get in and it may be in part of a regular building that has other businesses or things in it.

Here is a hostal in Madrid that has a good location and pretty much the same services as a hotel http://www.hostal-astoria.com/index.html

oh, I was comparing a hostal to an Austrian pension, pensiones in Spain are generally not as nice as hostales.

Hostal Persal in Madrid has got basic hotel standard, private bathroom, 24 h desk service and breakfast. Great location. Also an adjoining restaurant: http://www.hostalpersal.com/index.en.html

Great will check on those. I was looking at the All Seasons El Prado, any thoughts on that hotel? Great rates.

cbr, El Prado you mention is the same one I refer to in my post above. Its not a fancy hotel , but its very clean confortable and the rooms are reasonably attractive and of good size. Location is excellent a block from Plaza Santa Ana.

the 5 star deluxe gran luxe hesperia madrid is having a big sale for 99E including breakfast buffett..saw it at travelzoo.

We stayed in a great 3 bdrm 2 ba apartment in May. It is close to the Prado and is in walking distance to all the main tourist areas. If you watch Rick Steves travel show on Madrid you will see Carlos, the owner, showing Rick the sights. You can see pictures of the apartment on VRBO, listing #200710. I recommend it and would stay there again.

I stayed in the ME Reina Victoria hotel. It is in the plaza santa ana area. There is a rooftop bar that is just awesome at night to look and take pics. Very convenient area too for walking near good restaurants and bars. It is pricey though. The hotel clerk Patricia and Elena were very helpful.

We booked at the All Seasons and took two rooms. Would have liked an apartment but didn't want to deal with deposits and cleaning on the last days of the trip. Can anyone offer advise on day tours in Madrid? Perhaps something small group and informative?