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Which area to stay in Madrid?

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Hello everyone,

We are planing a trip to Madrid and we'll stay around 4 days. I know it is a huge city thats why we would like to pick a hotel wisely. Most hotels are located around Gran Via since I guess it is more touristic than other neighborhoods. So even though it will be our first time in Madrid, we want to go to places where locals go , yet would like to stay in central as well. A friend advised Serrano in Salamanca district but is it so far from everything? or would you prefer Las Letras or Gran Via or Puerta del Sol areas?

Thanks

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