This is a VERY central location. We were able to walk to everything with ease. Puerta Del Sol was about a 5 minute walk and Plaza Mayor only about 10-15 minutes walking. No need to even take the metro. We stayed at Maria's hostel for 5 days. She waited up for us to arrive and was very welcoming. She is a sweet lady that is there whenever you need help. There are other people staying at the hostel but the room is private. We were there in the middle of a heat wave in Madrid and since there is no air conditioning it got quite hot at night. But, this was fixed by just leaving the balcony doors open to let a breeze in at night. Other than that, I would stay here again.