We booked two nights (Booking.com) based on excelent reviews at TripAdvisor.
Just returned from there and have only good things to say. Very good location (10 min walk to the cathedral area, the centre of Granada), fine staff, good room and bathroom, fine airconditioning and plasma TV (although missing european channels other than spanish, one french, one english, one italian and one german), exceptional good value (60 euro per night, without breakfast).
If you leave your car on the street, please be sure not to leave anything in the car, as in Spain they have the nasty habit of breaking windows just to try to rob what they can (it happenned to me, the car was parked just in front of the hotel and someone broke the right window and forced the door, just to rob the GPS support... the only thing I had lefted there). And the police just don't care. They don't even come to your car location, nor wanted to see it, it seems they don't intend to try to find the robbers and I had to gave up the claim after waiting almost two hours at a police station waiting room...
Now, after having to interrupt the hollidays and having to travel many hundreds of Km without the window (very hot, as the air conditioning could not work properly, and also too windy), I still have to pay thousands of euros to repair the car...
And my insurance company tells me that they get claims like mine everyday, so be aware of robbers in Spain, specially if you drive a foreign plate car.