Not too bad :)
The place hasn’t been renovated or redesigned ever since the day it first opened. So quality is not its most strong point. For its price it’s ok.
The hotel is very small, with 6 floors, a very small and messy front desk area with things written down by hand in notebooks. The only thing this hotel has going for it is that it is priced cheaply for the bare bones very close to everything in the central part of Madrid. The elevator is tiny, one of those old-school ones where you open and close the door yourself, and fits maybe two adults shoulder to shoulder. There is also a staircase and a lounge/waiting area. I had difficulty communicating with the front desk staff because their English was limited (can't expect them to, given that their native language is Spanish, of course) but we figured it out.
In the triple room, we had twin uncomfortable beds with the bare necessities: pillows, sheets, blankets, tiny TV, night stand, table. Limited lighting was an issue with the room. Everything in the bathroom worked fine, and there were no problems with the plumbing or fixtures. There's a bidet, as common in Europe. The hotel seemed mostly empty. We only saw a couple guests while we were there. I'd recommend staying at a larger hotel with a little more life to it, unless you want something quick and don't care much beyond having a place to sleep.
I like it. Clean and simple
This is a terrible hotelwe stayed one night and moved to another hotel. This one had no air conditioning in 80 degree weather and was not clean.
Simple, clean, neat, budget. But great location.
The price quality relation in Madrid
Very basic rooms; do not count on either heating or cooling from the ventilation system. Beds are extra firm, but the sheets were clean. Crazy 70s style shower facilities. Walls are thin, can hear everything (!) going on three doors down. Get a room on the third floor if possible, the street noise lasts until well after midnight. Little cafe attached, serves frozen pizzas, burgers and basic pub grub.
I have stayed at the Anaco twice, 2008 and 2010, each time for four nights. The location is so good that one needs not ever take the metro to get anywhere in Old Madrid. The staff is very helpful and they maintain a friendly attitude (even with the students that I was traveling with both times). The rooms are so-so, but one should not be in their room when one is 1/8 of a mile from Sol. Gran Via is at the end of the street, Plaza Carmen at the other end. The cafe connected to the hotel is quaint and is a locals hangout. I have stayed at three other Madrid hotels and they all were either too large and/or too far away from everything. I would not consider staying anywhere else in Madrid. Location, location, location. Add the great staff and one has a great hub for exploration of Madrid.