JoAnn - I absolutely second (and third) Leslie's and Maria's recommendation for the Villa Real. It is a lovely small hotel, with very nice rooms, on two levels (a couple of steps between them), the bedroom being on one level and the living room on the other. Definitely ask for a room overlooking the Plaza or the Cortes. I've stayed at Villa Real several times, both on business and holiday, and find it the best hotel in Madrid for the $$$. It's an easy walk from the hotel to the Plaza Mayor, which is blessed with a series of delightful tapas joints, perfect for a tapas crawl, our favorite way of eating in Madrid. Have fun. Cheers, Fred