Our stay here was both a pleasure and a disappointment. On the plus side: The hotel is adequately described as a 3 star. It was clean, breakfast (included) was right on par with all of our other hotel stays during a 2 week trip through southern Spain. The room and bathroom were a tad small, but it was enough room for a 2 night stay. The room was had funky colours. The staff spoke enough English to help us book dinner appointments and generally point us around town. They were friendly and a pleasure to deal with. One big plus is that the number 32 bus which takes you to the Alhambra stops right in front of the hotel and you are a short 5 minute walk to the Cathedral and Puerta Nueva. Overall it is located in a great central location with all buses (which we like to use) within a short walk away. It is located in a quiet square just off the Gran Via which is important for us as we are light sleepers.

On the down side, we booked the deluxe room which had a loft. This room had a premium price which we paid for and therefore expected a larger living area. It turns out that the loft was empty, could only be accessed by a very steep set of narrow stairs and probably could have held nothing more than your empty luggage. As mentioned earlier, the lower level was tight, and I can't imagine that other rooms with no loft had less of an area, so we basically paid extra for nothing. Also the air conditioning unit was pointed directly over our bed and worked too well. We could not have it running while we slept as the air blew over us constantly. Even if you put the sheets over you, the air was too cold for your head. Turning it off resulted in a warm room and not so good a sleep. The positioning of the a/c could have been better.
Other than for this bit of misleading advertising (shame on us for not asking for more details and making assumptions) and the a/c it was a really good stay. All reviews in their log book were very good.

Summary:
Great location, really nice staff, good looking small hotel, clean and probably one of the better 3 star hotels around. Don't pay extra and book the deluxe room. We had no problem finding the hotel using our GPS, which is true of all of the 5 other hotels we stayed at during our 2 week visit.

Best advice we used from this site. Buy your tickets to the Alhambra in advance through the internet, pick them up at the pre booking line and save yourself a ton of time. You still need to give yourself at least a 1/2 hour to 3/4 of an hour to line up to pick up the tickets and walk to the entrance, but this is nothing compared to the lineup to purchase tickets on site.
Finally, the parking at the hotel was an experience in itself. You put the car in an elevator which takes the car to a lower level which has 5 or 6 parking spots. It's tight and will challenge your driving skills. We did it and have a story to tell as a result. No negative comment, just be prepared.

My girlfriend and I stayed at Shalma in Granada for 4 nights and it was fantastic. Everything was clean and they had a great breakfast. The location was wonderful, practically being on top of a big irish and within walking distance to everything else Granada. Comes highly recommended and we'll look for it again the next time we're around!

Looking for a reasonably priced, well located, clean, modern, trendy, friendly hotel...........go to the Shalma. Just recently opened, this hotel is located directly under the Alhambra, in a quiet trendy up and coming area of Granada. A sumptuous breakfast, included in the rate, clean, quiet rooms (even one that looks onto the main street), plasma TV...........and above all, friendly, professional staff who just make you want to go back...10 out of 10!!!!!!!!!!