A short walk down one of the streets connecting Gran Via and close to the metro station. Despite being situated along an alley with sex shops, security into the main building where the hostel is located is good. You're allowed access to the general building only if you buzz the correct button and are proven to be a bona fide visitor.
Although the reception does not speak English, it's not likely to be a problem if you're here just to rest for the night. The single room is small but acceptable. The standalone shower and sink appears weird and the former is just the right size to accommodate me (average sized Asian female).
Prices on the low side amongst hostels with central locations. Good if you're not intending to stay long or don't mind the compactness.