This quirky bed-and-breakfast just around the corner from the Thyssen-Bornemisza museum offers the opportunity to stay right in the heart of the Arts district at knock-down rates. Its rooms are minimalist white with artful splashes of red. Identical pairs of strappy flamenco shoes are mounted like pictures on the wall. Everything is clean, bright, and functional: The beds have crisp cotton sheets, and the white-tiled bathrooms have power showers. Some of the rooms are on the small side, so you might want to ask for a larger one with a view, in the knowledge it will be just as good as the view from the Palace hotel across the street. A simple continental breakfast is included and served in the informal shared space, where free coffee is available all day. Staff are friendly and professional and seem determined to make your stay a good one. If you plan to stay in Madrid for 5 days or more, even greater savings are available.