I stayed here for 2 nights in a single room. The room is of a fair size, not as tiny as other single rooms I've stayed elsewhere in Europe. The bed is larger than a twin... almost a full size bed! The bathroom is spacious. Everything is clean. There is an in-room safe, also a hairdryer.
My room faces the back alleyway and it is extremely quiet. Like others have mentioned, there are plenty of tapas bars on the street. I didn't eat at any of them as all allow smoking and they're very smoky.
I thought the location is decent. Maybe 10 min walk to Plaza Nueva, or the Cathedral. I actually walked up to the Alhambra. It took 20 minues from Plaza Nueva, a fairly steep hike but I enjoyed it.
All the front desk staff are friendly and helpful. I borrowed an electrical adaptor from them to charge my camera battery.
I ate breakfast there on both days. Yes, €8,50 is a bit expensive but the buffet spread is very good. It has cereal, juices, yogurt, cold cuts, cheese, cucumbers & tomatoes, fruits, various breads, hard-boiled eggs. It also has a hot plate serving scrambled eggs and bacon. I think the price for breakfast is justified.
I arrived in Granada by plane. There is a bus that goes to city center (timed to flight arrivals). It's €3 and takes about 40-45 minutes. You get off at Puerta Real (one stop after the Cathedral). When you get off, you'll see a plaza with a fountain across the street. What you do is cross the street, head towards the far end of the plaza (your Right when you're with your back towards the road). Walk through the plaza and then you'll see the sign of the hotel straight in front of you. It's very easy to find and the walk is no more than 5 minutes.
I left Granada by bus from the main long-distance bus station. You can get there by taking bus #3 or #33 (€1) from Puerta Real. Bus stop is on the side of the plaza (no need to cross the main road). When I left during rush hour (9am) the trip took about 30 minutes.