1. Cat's Hostel: They have their very own bar called "Cave Bar" to start the night off right with cheap beer and new friends. Even located in a 17th Century Palace and right in the centre of the city.
2. La Posada de Huertas Hostel: Located in Madrid's "District of Letters" home to many of Spain's great writers: "Cervantes, and Vega"
3. Bull's Hostel: Located in Santo Domingo and in the heart of down town Madrid
(Photo Cred: http://www.hostels-in-madrid-hostels.com/blog/img/cabeceraMadrid.gif)
Some hostels might not permit sleeping bags, for reasons of cleanliness.
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This place is the best to stay while spending a holiday season Christmas Eve.
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