My sister and I will be in Madrid for two nights in mid-August, before traveling on. Neither of us has been to Madrid before, and of course we realize that in two days we will barely scratch the surface of the city.

However, we would like to maximize our stay there by looking for a hotel in a centrally located area of the city. We are both in our 50s, fairly well-travelled, and prefer clean and decent, but not necessarily luxurious, reasonably to moderately priced hotels. Since we're only in town for a couple days, "touristy" is probably okay - normally I prefer an apartment in regular neighborhoods most cities when I stay longer ...

A big plus would be to find a "double room" with separate beds, but that's not absolutely required. In August, I would imagine air conditioning is a must, though.

Anyone have favorite hotels in Madrid?

What does "reasonably to moderately priced hotels" means to you? Is is 60 Euros? 30? 90? 120?

I liked Hotel Europa; you step out the door to Puerta Del Sol and surprisingly enough, my room was quiet.

I also recommend Apartamentos Hotel Principe 11; they are more an aparthotel with a kitchennette (which may attract many travelers who would not sync with Spain's eating hours!); great location and price.

I recommend you visit the madridman.com website. Madridman is a "cybercelebrity" with a great website of all things Spain, including the best source of advice I've ever seen for Madrid on a budget.

...and yes, pay whatever is necessary for a room with A/C. WORTH IT. Also, 2 twin-bed rooms are more common than you think!

Try solmelia.com
I got a deal where you pay for one night and stay for two nights at the Tryp Menfis on the Gran Via. It was great and I like the location. We paid 120 euro for the two nights which came out to $90 a night. Really good deal. Not sure if you could get that but certainly worth a try. They may have similar offers in other parts of the city.

I don't know what you mean by "moderate". Lately , I have stayed at the Villa Real , a hotel of the Derby chain which is very conveniently located near the museums and places like Plaza santa Ana and Plaza Mayor. I think last year in August I paid 135 euros.

I know they had individual beds becuse I stayed there with my son last year

In late July and August they tend to have promotions. I believe their website is www.derbyhotels.com

How could I forget Hotel Mora (hotelmora.com)across from Museo del Prado? The double rate is 78 euros (tax included).

Look for specials and promotions, there are usually a wealth of them for summer (july-august) released after Holy Week.
You would have twin beds almost everywhere unless you ask for anything else and as others said before..yes, AC is a must !

I recently stayed at Hotel Plaza Mayor in Madrid. I thought it was great - not fancy but very quiet and the staff is cheerful and helpful. I stayed in a single, but I know they have double rooms with 2 separate beds (I saw the maid cleaning one). It's located near Plaza Mayor and to Metro stop Sol which has 3 metro lines. It's about 10-15 min walk to the Royal Palace, and a few stops to the big 3 museums (it's also walkable but I didn't).

http://www.h-plazamayor.com/index.english.html