This place is not as advertised on its website. It is not really a hostel, it appears to be more a hotel that downgraded into a hostel in order to be able to fit more beds.
Staff was rude and unfriendly. The rooms were run down with mismatched sheets and the bunk beds creaked like there was no tomorrow. There were not enough showers (only 2 for all the women on my floor). The bathrooms were not clean and the facilities were really crummy. The breakfast is not worth mentioning. There is no internet access. The lockers are way to small to store anything but a passport and some document ( I could not fit my laptop). You have to pay extra for the lockers as well.
The positive things about it: 1) cheap, and 2) close to the Banco De Espana which is a good location for seeing things like the Prado Museum. Other than that, stay somewhere else. I recommend Cat;s hostel, Canizares street.