The Los Tilos is certainly in a superb location, close to many good restaurants and bars and close to the central shopping area. It is also within walking distance of the old town and virtually next door to the Cathedral.
However there is a noise problem. I stayed for 2 nights in a room at the side of the hotel on the 5th floor and hardly slept at all. The Granada rubbish collection service seemed to take most of the night starting with a bottle collection that despite double glazing and shutters seemed to be happening in the room. Then came the normal refuse collection which merged seamlessly with the starlings waking up in the square.
We also encountered very grumpy staff and problems getting breakfast at 7am despite that being the advertised time.
All in all, clean, comfy and well placed, as long as you're not too bothered about sleeping or eating.....

Booked at Los Tilos after seeing so enthusiastically recommended here at Tripadvisor. I was SO thoroughly disappointed!
It's located on a very noisy square full of tourist-menu type restaurants and souvenir shops. Not my idea of a good location - had I known, I'd gone someplace in the Albaicin quarter: quainter, quieter and more authentic Granada.
Even though the lobby doesn't give you that impression (it's been nicely remodeled), the place needs remodeling badly, which you only realize once you're in your room or even in the hallways to get to your room. It feels worn and tattered. And here comes the worst: I GOT BIT BY FLEAS IN MY ROOM!!! gross!!!!! I finally experienced firsthand "fleabag hotel". There were light switches that were a total electrocution hazard right next to my bed (see pics). The towels were the kind that don't dry because they are made of synthetic material. Again, GROSS!! I'd be ok with that at a youth hostel, I guess, but a hotel for $50 euro a night (for a single room)?? COME ON!!!
Plus, the service is very unfriendly (they couldn't care less) and as was pointed out by other reviewers, the breakfast is crappy.
In short: for the price, there's PLENTY of better options in Granada. Look on the Routard guidebooks, they are by far the best for accommodation and where to eat! One place I found walking around in the Albaicin was "El Acebuche Al Andalus", a quaint place to eat that also has basic and way cheaper rooms than Los Tilos - and I later found out was recommended on the Routard guide too!

This hotel is a great value for the price - we paid 93 Euro per night. It is located on the Bib Rambla Plaza and is a great location while staying in Granada. It is close to the many historical sites, restaurants and bars and the bus needed to visit the Alhambra. My wife and I stayed at this hotel for 2 nights Sept 2007. We had a room with 2 beds overlooking the plaza. It was quiet while sleeping because the room was air conditioned and had room darkening roll down shades The room was modern and large with a safe. I would easily recommend this hotel to anyone for the price and location. It is not fancy, but it is clean and the location is great. If you have a car, check for the location of the parking lot the hotel recommends. It is 5 Euro per day cheaper then the other parking lots nearby. Also get a map of the area so you can find the Bib Rambla Plaza. It is easy to find once you get to the plaza which is near the cathedral.

This is the only hotel located within the Bib Rambla Plaza, which is bubbling with activity. Although we got a room overlooking the plaza (#101), which was nice, it was surprisingly not at all noisy. We paid only 70 euros plus tax for a double (did not opt to have breakfast here), and we found it great value. The room was extremely large and spacious, the a/c, toilets, etc were all good, and there is also a safe deposit box in the room. The walls are well decorated, and the ambience of the hotel is very nice. You are very close to Capilla Real, Plaza Nueva and other attractions, and don't have to walk far to board a bus for Alhambra. The front desk staff speak poor English, but enough to communicate. Only problem we faced is that the hotel was not very prompt in replying to e-mails.