We'd like to stay in a hotel that is not in a touristy area, not very noisy area, yet not in a faraway suburb. We like to stay and eat where the locals eat.
anything in central Madrid will be touristy and maybe noisy, to have both you need to go the peripherie of the M30 past the Monumental Bullfighting plaza in Ventas, along Alcala Street ,for example. The neighborhood is Ciudad Lineal, it is where i used to lived. Metro line 5 connect thru all the main sights all the way thru Retiro, Gran Via and Sol stations amongst some. One such hotel here is
Eco Hotel Alcala Suites,Calle de Santa Leonor, 24 . 600meters from metro ciudad lineal line 5.
You can ,also, try the area north of Plaza de Castilla along the Castellana in Chamartin and Las Tablas neighborhoods. One such hotel here might be
Hotel Caballero Errante ,Calle Pinos Alta 14. about the same 600 meters from plaza de Castilla. Metro plaza de Castilla line 10,9,and 1.
normal facilities of 3 stars hotels away from city center, where there will be less tourists, better prices and less noise ,generally speaking.
