This was my first trip to Granada in 20 years. Much has changed, including hotel selection. I stayed at the Hotel Granada Center for 6 days in late June 2003. My experience was great. The facility was that of a new Hyatt Regecy. The staff was freindly and happy to serve. Its not a presidential palace, but the crew from Air Force One stayed there on President Clinton's stay. If you've obtained a room for 92-100 eu/night (or $100 US)/night,including breakfast, you'll be very happy.
The higher floors on the front street side have nice, large terraces and views of the University of Granada and city line. There is some occassional street noise, but not a real problem. The terrace rooms are a little smaller, but worth the reduced room size. The breakfast was sufficient, but I was tired of it after 6 days. Also, its hot there (95f) most of the summer, so the new building's AC was a nessecity.
About a 15-20 min. walk from the Alhambra, historic City Center and Albycin. Also would recommend Manuelos (gambas con jamon -- shrimp with ham - and I hate ham) and Sevilla Restaurantes (individual paella - with night time dinning on plaza in front of Main Cathedral, with live guitarist), and if you can get a reservation, Carmen de Tomasa restaurant in the Albycin is an excusive dinning experience with an unparalled view of the Alhambra at sunset. Have fun (y buen viaje).
Eric T.