The location of this hotel is excellent. We did not set foot on the subway. If you are willing to tolerate two things, then this hotel is a great deal. First, the bathroom had an overwhelming smell of mildew. I think I remember seeing this mentioned in other reviews. We kept the door shut and aired the room out periodically. Second, the room is very loud at night. Noise from the street continues into the early morning; noise from other guests coming and going also filters through the door. However, the staff was friendly, and as I mentioned the location can't be beat!

The location is very convenient, close to the subway and in walking distance of many activities.
The reception is ok but not super friendly, they will help as little as possible.
The room is perfectly clean, has the necessary furniture and is quite comfortable.
Unfortunately, the isolation is quite poor, which makes the room very noisy, from the bars next door and from the corridor. Earplugs should help.
The breakfast, to be taken in a close restaurant, is very poor, not fresh and of bad quality. I would advise to go elsewhere.
The overall value is pretty good.

First impressions last and unfortunately that is what I'll take away from my stay here. The front desk girl who seemed to work most days into early evening wasn't so friendly nor service oriented. Asked politely in my best Spanglish if there were some rooms bigger than others as had quite a bit of luggage but was told 'this is not a hotel, it's a hostel'. OK then. Thank-you and welcome to Madrid. The girl who came on later was very friendly and lovely.
The location was great. The rooms were small but very clean and well maintained, although the bottom sheet for the bed came untucked every night as it wasn't a fitted sheet and was too small to stay tucked in. We were on the 4th floor, there is an elevator, but there was the most offensive smell every time we stepped foot in it. It was almost as though there was a dead animal resident in the lift shaft. We ended up only using the stairs in our comings and goings.
Hotel was quite noisy too from the Irish pub on the corner which was opened and pumping 7 nights of the week until 5-6am.

We booked our stay at El Pasaje thanks to the reviews on Trip Advisor. It is situated on a pedestrian street and we were not bothered by noise. The rooms were small but well organised with a desk, fridge and safe and spotlessly clean and a change of towels every day. The air con was fab which was a great relief in the summer heat!
The breakfast at La Levante restaurant was very good and service by staff there was excellent.
The receptionist/ maid was delightful. She worked very hard. Nothing was too much trouble for her and she spoke very good English.
Great value for money in the centre of madrid. Walkable to the key sights!