We stayed at the Hotel Alixares for two nights in the fall of 2008 as part of a tour group visting the Andalucia region of Spain.
When we first arrived we noticed the "E" in the HOTEL sign was missing and immediately thought of that American TV show, HOTL Baltimore from 1975. Actually, the hotel wasn't that bad. It in an absolutely perfect location if you're going to Granada to visit the Alhambra, but it is a fair walk, or a fairly short bus ride into town, which is about 500 feet lower in elevation than the hotel.
The rooms were ok, but nothing fancy. We had a room on the 2nd or 3rd floor but it was actually at ground level since the hotel is situated on a fairly steep ravine on both sides. We looked out to a poorly maintained garden and trees that blocked any views.
We found the room to be somewhat stuffy and warm at night and when we asked about the air conditioning we were told it was turned off for the rest of the year. We were there in October but the weather was still quite warm in the mid to high 20's C, so we could have used the AC for sure.
We ate in the hotel restaurant one night but it was less than exciting also. We also ate lunch and had drinks in the little bar across from the front desk and it was quite nice and the bar tender was very friendly. Unfortunately there aren't a lot of restaurants within a short walk, but we did take the bus down town and found some very nice places to eat. Take the bus from just down the hill across from the entrance to the Alhambra, to the downtown and to the other end of the line for a quick and inexpensive tour of the city. It's well worth the couple of Euros that it costs to not have to walk up the hill to the hotel.
If you do get the chance, take a walk through the small olive orchard directly to the right of the front doors of the hotel, and go towards the back. There is a viewing area there in the park that gives a spectacular view of the city and the Sierra Madres mountains. It's really stunning.
Overall, I would recommend this hotel for anyone visiting the Alhambra. It's not the best hotel I've stayed in, but it's not the worst by far. Enjoy life and don't sweat the small stuff.