Definitely one of the most beautiful hotels I've ever been. Nice room, alhambra style decoration, an awesome view of Granada city from the balcony of the restaurant. Astonishingly beautiful walls all around. Very, very close to Alhambra (300m walk). Go!
If you go there, ask for the restaurant called Damaquera. At Cl. Damasquera 3 (not a bar with the same name in the same street). Awesome.