The hotels in Madrid were having a booming business and it was impossible to get a room at this moment. The main reason for that was the English fans.
As the England national team had reached the finals of a major international competition for the first time in fifty years, there was a huge excitement back in England. Many of the England fans who were not planning to watch the competition live in Spain initially, packed up and flew to Madrid. It was already extremely difficult to get a ticket to the final, but the English still hoped to meet people who wanted to get a refund for their tickets outside the Bernabeu stadium.
As for the problem of no lodging? That was not a problem at all. They would sleep on the streets just to watch the match. Many England fans brought their own tents as if they were going to camp out in the woods. The passion of the England fans was obvious for everyone to see.