Here you can ask for a booklet listing many of the hotels in Madrid (it's more of a book!) and another listing most of the hostals/pensions. The directories include price and contact information, and list the facilities available in each.
There are one or 2 hostals which start at 15? per night for a single room, which is a great price for a budget option.
A friend of mine stayed in a place in the heart of Conde Duque/Malasaña (bohemian/nightlife zone) for 18? including free wifi. Turned up on the day (high season) and had no problems getting a room.
Address: Calle La Palma, 61. The street has many other hostals too, and is a great starting point for those arriving with backpack/without plan!


