Our stay at the Alhambra Palace was supposed to be our special splurge on our 3 week trip of Spain. It turned out to be the greatest disappointment. It was very expensive. The staff treated us as if they were doing us a favor by letting us stay there. No one was friendly (the maid, actually, was very nice). The food was ok. The selection was not extensive.
Our room was on the lower floor next to the convention center - and thus (the night there was a party) there was a lot of noise. The men's restroom backed up to our room - and this noise went on until 2:30a.m. There was only one other room used on our floor - so I wonder why they would put us next to the convention center - but they did.
The location is great for The Alhambra - but not so great for doing things in Granada (like eating and shopping).

Our large well appointed room had fantastic views. First class service and excellent food added further to very pleasureable stay.

Only minutes walk from the Alhambra Palace and very close to the city centre and other attractions - served buy a very frequent bus service for those finding the hills a little difficult to cope with.

Highly recommended

I am really torn about giving this hotel anything more than an average rating, because were it not perched on the hillside, overlooking all of Granada, and a few minutes from the Alhambra entrance, it wouldn't have too much going for it. As other reviewers have pointed out, the hotel rooms are very basic and not very impressive. I enjoyed the tilework in the bathrooms and the balcony the bathroom had. But for what claims to be a four star hotel, you can't find the most basic amenities in the room - not even a radio-alarm, or any cups, or anything more than the beds and TV. However, having said that, if your primary purpose is the Alhambra, you can't get more convenient than this, and the views from the rooms and the terrace are fantastic. The lobby area has alot of faux-Moorish decorations and reminded me of some of the tacky aspects of the Vegas hotels. The food is overpriced and mediocre and the service was very slow the night we ate on the terrace. However, the staff was friendly and helpful at all times. If you plan on spending alot of time in Granada itself, I would not stay here. If, however, your goal is the Alhambra, this is a very convenient hotel and the view itself may be worth it. Having said that, there are quite a few cheaper options right around the corner from it and you can always simply visit to have tea or coffee on the terrace and enjoy the view, without paying the price for staying at this place.

Good hotel, good service, ask for a room over looking the city of Granada. the centre is only a short walk down a steep hill there are plenty of buses back to the hotel from the bottom of the hill they run every 5 minutes or so.the restaurant was nothing special you should eat in the centre. The hotel could not get me tickets for Alhambra Palace so if you want to visit the Palace book well in advance.