My Madrid Hotel

My Problem is that, although there are that many cheap hotels in Madrid, I only do need one single room, out of all those hotels. Most travel guides that I have read said, that there are about 1000 hotels , hostales and b&bs and 60.000 hotel rooms just within a radius of a couple of miles.
Some of you might understand what I am actually talking about, the more choice you have, the more difficult it can get. Well in Madrid's case, that is what happened to me. Cheap hotels in Madrid en masse, but which one is the right one. Well I did it the old school type. I just went there without any reservation and it took me only 2 hours to find a cheap, comfortable room for about 40 Euro a night. Then the second night I went into a better hotel for about the double price. The Hotel Emperador in Madrid was just about three classes up from my first nights accommodation and it will stay in my travel book as a good one.