Casa de Madrid in a gorgeous hidden bed and breakfast located on the second floor of a grand 18th century building. The B&B is tucked away without a sign or any … markings to prevent the random tourist from happening upon it. The interior of the flat is opulent with high ceilings, antique furniture, plush draperies, and an abundance of paintings, but the accommodations still include modern luxuries like TV and internet. Rooms from 210€.[link]

Like the well-known ME Hotel, the Las Letras Hotel has a popular rooftop terrace with excellent views of the city and totally decked out high tech accommodations. The … rooms here are colored a dark rust with cobalt blue accents and have giant fluffy beds. An added bonus here is their top notch restaurant which serves high grade sushi and fresh seafood, not such common fare in the tapas-centric dining scene here. Rooms from 150€.[link]

A heavy hitter in a city with over a dozen design hotels, the Hotel Puerta America is an incredible collaboration between modern architects. It features work by such big … names as Zaha Hadid, Norman Foster, John Pawson, and Christian Liagre. Some rooms are more functional than others but all are unlike any hotel room we've ever seen. The hotel's location is a bit far from the city center, but it's worth it for any design freaks. Rooms from 190€.[link]

Though the exterior of the Hotel Quo Puerta del Sol is nondescript and a bit bland, the inside can be described as anything but boring. The interiors are dark with red … and black accents and the service here is impeccable. Rooms from 120€.[link]

The ME Hotel is a completely modern and stylish boutique hotel. Each room is decked out with free Wifi, a plasma TV, a library of DVDs and CDs, and iPod docking stations. … The hotel also features a popular rooftop terrace with excellent views of the city and of the fashionable beauties that go there to take in the scene. Downstairs the Midnight Rose serves modern Spanish cuisine, cava, and high end cocktails. Rooms from 210€.[link]

The incredibly opulent Palacio del Retiro, part of the AC hotel chain, is a favorite for travelers who love stylish luxury. The hotel is located within a 19th century … palace and keeps some of the original charm while adding modern amenities and furniture. The rooms are equipped with plasma TVs, internet, and free minibars. Rooms from 250€.[link]

The Santo Mauro is another top notch property of the AC hotel chain. Instead of a former palace, this hotel is located within a former embassy. All of the grand beauty of … the building has been maintained and the rooms have been reworked to be simple and modern yet still elegant. One of the highlights here is the dining room, located in the oversized embassy library that still has books on all of the shelves. Rooms from 280€.[link]

The hip and modern Urban hotel has all of the usual attractions like Wifi, flat screen TVs, and mood lighting, but it also has a another incredible draw--a rooftop pool … in beachless Madrid. The pool alone is reason enough to stay but the rooms are incredibly comfy and the downstairs bar is popular with hip Madrilenos. Rooms from 195€.[link]