The hotel is in a great location, right in the town centre and only a 3 minute walk to the Cathedral and Plaza Isabel Catholica. Although it looks promising from the outside - and from the pictures on the hotel website - our room was a bit shabby, but nothing that a lick of paint and some brighter light bulbs couldn't fix. Bathroom was big and fairly well furnished. Cleanliness was fair, but not great.
The main problem was the noise - there is obviously some sort of generator in the building that emits a constant, and loud, hum.... Even my ear plugs couldn't block out this irritating noise. Plus, the walls are paper thin, so be prepared to hear everything from nextdoor. Comfortable beds though!
For 50€ a night for 2 people I shouldn't really complain - at New Year's this was certainly the cheapest hotel around in this excellent location. The reception staff were extremely friendly and helpful, recommending areas for us to visit and bars to drink in - without their help we wouldn't have been able to make the most of Granada.
All in all, so long as you don't mind having disturbed (or no) sleep for a couple of days, you could do a lot worse than this hotel.