I really enjoyed the four nights I stayed at Hostal Mesones. The location is amazing (a minute walk from the cathedral and surrounded by restaurants and cafes) and the value for money is outstanding. It's not at all fancy but perfect for those seeking an affordable, clean, well-located, friendly small hotel to stay in Granada. I will definitely stay here again if I ever return to Granada.
My only warning is there are a lot of stairs. It was fine for me but could be an issue for people with mobility issues.