I always stay at this hotel when I am in Madrid. It's just 5 minutes from the airport, it has free transportation service to and from the hotel, the van runs every 30 minutes from 5 AM to 10 PM.
The rooms are large and new, it is a quite hotel and even though you are so close to the airport, there is no noise. Modern hotel with all amenities, free wi-fi throughout the hotel. It has a nice restarurant, a little pricy but if you want, you can walk to a mall which is about 5 blocks from the hotel and you will find plenty of restaurants. Great hotel for overnight travel.
To go downtown Madrid, you can take the free ride from the hotel to the airport and there buy a train ticket and get off at Antocha station.
Of course plenty of taxis at the hotel. A ride to the airport is around $10 to $12 Euros.
The hotel rate varies but you can get a good rate on trip advisor or any other site or just checking directly with the hotel. Last time I stayed there in may 2012, I paid $85 Euros for a king size room. Not bad at all.
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