My mom and I stayed in the Melia when she came to visit me in Granada (I was studying abroad for about 5 months). I can honestly say the Melia was a much more luxurious and comfortable hotel than the Hotel Carmen, which my dad stayed at in April. The room was substantially larger, with a big bathroom and a good shower... the only thing is you can hear your neighbor through the bathroom walls as if there was no wall! The beds were also pretty comfortable, compared to some others we had throughout Spain.
The location of the Melia is amazing from my experience, as it is close to most of Granada's sight-seeing activities and the shopping center of downtown. It is also surrounded on 3 sides by cute restaurants and outdoor cafes, which we both really enjoyed. Also it is located on a quiet street, as opposed to Hotel Carmen on a busy one. The room was a little hot, but we just opened the window at night and that was fine.
Definitely worth the money to stay here, and you can't beat the location. I would skip the expensive breakfast buffet and walk across the street to the right and ask for "una tostada y cafe con leche" and for about 4 euros you can have a baguette with jelly and an amazing coffee.








