Don't get me wrong, it was VERY nice and we had a huge terrace to ourselves. But for an extra $100 night we didn't get much more than we already had at the Plaza Neuva - which was a more convienient location. They turn the bed down for you at night at the Alhambra Palace and you get a free hot breakfast, but other than that, it's an average above average hotel that caters to wealthy Americans.

I can summarize entire experience in two words “Great hotel”. It is pricy, but truly excellent. It is located steps away from Alhambra, in a nice park like area of the city.
There are plenty of eateries in the neighborhood. Taxi to central part of the town runs for about 5 EUR. Staff is very pleasant and English speaking. Rooms are nice and clean with sizable bathrooms. Ask for a room with a view. It is very romantic, especially at nighttime. Overall hotel has some feeling of Moorish castle. It was a memorable experience.

Ask for a second floor room with a balcony. Some reviews I've read complained about the smell of the fountains, but we didn't experience this, maybe because we were there in April and had a second floor room with a balcony. The lobby needs a little updating, but the staff were extremely friendly, the outdoor terrace overlooking the valley was peaceful and tranquil, and being within the walls of the Alhambra was both convienient for touring the site and magical. The mini bus takes you to town which is only several minutes away but a world apart and with the town being a litle funky with drop outs and hippies (yes hippies) it was nice to go back to the palace in the evening. The dining room was very good, and it would be perfect if they would just dim the lights a little during the meal to create a more intimate atmosphere. We had dinner for two including a reserve bottle of wine for the cost of a good bottle of wine in most restaurants in France. Some of the salads were wierd but the Paradores offer a fixed dinner option for 28 euros a piece which includes an appetizer, salad, entree and dessert. A very reasonable cost. The breakfast was little pricey, but it was a rather extensive buffet. I recommend this Paradore to compliment your Alhambra experience. This was the most expensive hotel of our trip, and i'm glad we stayed there.

Our stay at the Hotel Alhambra Palace was quite lovely. It was easily the most elegant hotel we stayed in during the trip, and probably the most efficient.

I booked the room -- a double with two beds for my father and myself -- a few months in advance by personal email correspondence and not through an online service. They were quite helpful and able to assist us with reservations to local restaurant before we arrived. We made our own bookings for the Alhambra itself, but I understand that they will also assist you in making reservations, which are absolutely necessary if you don't want to spend an entire day standing in line to see the palace.

Our room overlooked the city and was spacious, well-maintained and as beautiful as the rest of this very elegant hotel. It wasn't a cheap place to stay by any means, but worth the money for a little bit of that pampered feeling.

Location-wise it was also well placed -- only a five minute walk from the Alhambra, and fifteen minutes up the hill from the Plaza Nueva. There are convenient buses that run often up and down the hill -- to the Plaza Nueva and all the way to the Albaizin -- so you don't have to worry about walking up and down the hills.

All in all, we were very satisfied with our stay. The only rason I have downgraded it slightly is because at checkout, the front desk clerk -- who always seemed to be ratehr harried, mistyped our bill, charging us 135 euros for a soda from the minibar instead of 1.35. The bill looked a bit higher than I had calculated which is how I caught it, but it was a major mistake.