We stayed for one night at the Hostal Palacios in August arriving by train from Madrid. We took a taxi to save carrying our suitcases up the hill of Toledo and it cost less than five euros. The room was clean, complete with a flat-screen TV, air-con and en-suite bathroom overlooking a quiet but quaint street.
We decided not to eat at the Hostal's restaurant in the evening that we were there so we could check out more of the city but the menu's looked reasonably priced.
We ate breakfast in the restaurant below which was 3 euros for a bacon and cheese sandwich with a drink. Staff were pleasant and accommodating. If you are looking for a cheap and convenient location, don't hesitate to choose the Hostal Palacios.
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