Very good location close to many tourist sites. It can be a bit loud especially during weekend, but as long as you are out enjoying the city it should not bother you. The walls are a bit thin and you can hear the neighbors if they are around.
Area has many good and some ok places to eat. I would recommend skipping Sobrino de Botin and going to Casa Lucio (making a reservation is a must) for lunch or dinner as the food is way better.