I just stayed in the Posada Don Jaime hotel for several days. I had a wonderful experience. First the hotel is very well located, in the beaultiful old center of the city, and very close to the monasterio and royal palace of San Lorenzo, which is the main touristic attraction of the city. There are also lots of restaurants and bars close, as well as a supermarket. Second, the hotel itself is very beautiful and comfortable: it is an old house tastefully restaured, which feels like a home, rather than a hotel. It is very comfortable, the bathroom is modern, the room is pleasant. There is free wifi.
You can have breakfast at the hotel, and I would recommend it: it is very good and very copious. The proprietors are very helpful and nice. During my stay, another patron had a health emergency in the middle of the night, and the hotel owners were incredibly helpful and kind, as the patient's wife told me. Hopefully you won't have to test them in such circumstances, but they sure make you at home. This is wonderful place, and if I am lucky enough to come back to El Escorial, I know that I will stay there again.More