Can't ask for a better, more convenient location for exploring Madrid as a tourist. Yes, it's quite compact, but it's comfortable for a couple or a single person if you're going to be out and about all day (which you should be!) and the terrace is quite nice. If you're staying on a weekend, be aware that the street outside gets a little noisy with partygoers at night, so it might not be the best choice for a sensitive sleeper.