Hostal Penelope is a perfect place to stay, the only exception is noise from the street - however that was easily solved with earplugs.
Our room (302) on the 3rd floor (there is a lift), was reasonably spacious, had two small balconies which overlooked the street below & there was also a view of the snow-capped mountains which was very stunning. The room was cosy, very clean (spotless) & had the best air-con I've ever seen. There's a remote control with "too warm - too cold" on the bedside & the air-con (which was needed) was very quite.
To add, the staff were very friendly & extremely helpful. This, for me, was helped even further because one of the staff members is Swedish.
The tapas on sale in the attached bar/restaurant are superb, give the assorted (sortidos) tapas a go! On the day we went to the Alhambra they made very yummy bocadillos for us cheaply even though they were very busy.
& the location is unbeatable for everything esp night-life!
To top it off it was very very reasonable priced - we would definitely stay there again!





