We stayed at Hotel Guadalupe December 27-29, 2006. Its location is excellent for visiting the Alhambra. It's not in the center of town, but rather on the hill where the Alhambra is located, just across the street from the ticket counter and entrance. There are plenty of shops and restaurants to keep you busy between visits to the Alhambra, but if you need more, there are buses about a block away that will whisk you down the hill and into the center of Granada for 1 euro.
The rooms are variable, and we booked directly with the hotel, asking for a room on the 4th floor. All of the rooms on that floor have views and balconies. The two best are 407, with a mountain view and a huge balcony with table and chairs, and room 412 with an Alhambra view and the same size balcony. The rest of the rooms have smaller balconies. The hotel has a cafeteria and a restaurant. The food in both was fine. We had the buffet breakfast every day, for an extra charge.
When we were at the Alhambra, there were only a couple of places to stay within walking distance. I recommend the Guadalupe over the exorbitantly priced Parador, which is within the precincts of the Alhambra. A tip: Many tours book this hotel, so be sure to contact the hotel directly and ask for one of the better rooms.







