I am planning a trip to spain, and would like to tour these cities: madrid, barcelona, toledo, bilbao, granada, seville, cordoba. what would be the best way to travel between these cities but keep a hotel in madrid? or would it be best to move to a hotel in the city i am touring rather than going back to madrid every time? Please help!! 
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It would not make sense to visit any of those cities (except Toledo) from Madrid and return the same day.
Much better to book a hotel in each place…they all merit at minimum 2/3 days each. The Alhambra in Granada is almost a day in itself!
The train travel is excellent, but a bit expensive.
train they have good trains.