In terms of location, they don't come much better. Within a minute walking distance you have numerous restaurants, bars and ice cream shops. The rooms are about average size and very clean with a free safe (large enough for most things including a laptop) and free Wi-Fi. The twin beds were very wide and very comfortable with good qualify bedding. However...we were in room 203 overlooking the sea and it seemed ideal for a restful stay, what spoiled it was the totally inadequate soundproofing from the rooms on floor three and the restaurant on floor four above. Every time someone moved a chair or table in the restaurant we could hear it on the second floor. On one afternoon they were holding a function in the restaurant and the noise was very intrusive. I cannot imagine what it was like on the third floor directly under the restaurant. It would be totally unfair of me to mark down the quality of the rooms solely on this one issue as other rooms probably don't have the same problem. The layout of the hotel is a little unusual. There are 9 floors. You enter on floor six and the restaurant is on floor four so unlike many hotels some of the rooms are 'downstairs'. This hotel appears to be built into the cliff side and perhaps the solid rock foundations don't help the acoustics.
We were on a half-board basis and ate in the restaurant 6 days out of 7. The food quality was very mixed. Some days the food was good and reasonably hot, on others it was quite poor and many things were barely warm. If you don't eat fish and seafood the menu choices are somewhat limited. The breakfast, which is buffet style was also a little inconsistent with the bacon on two mornings doing a very good impression of boot leather. Again many of the items were barely warm although they did have a microwave in the restaurant for guest to use to warm up their food. Sorry, perhaps it's just me, but in a four star hotel I don't expect to have to warm up my food.
This was a difficult hotel to review. It has many good things going for it, the free safe, the free Wi-Fi, the quality of the beds and bedding and the location. On the whole the staff are friendly and helpful, with the exception of a couple of restaurant staff who were obviously living charisma transplant donors. Nerja itself is clearly suffering from the current financial meltdown. Many shops are closed and/or up for sale and there are many new buildings which are unfinished and on which work has clearly stopped. There is potentially a superb square in Nerja (where the museum is located) but it is unfinished with the front of all the shops just breeze blocks. However the Balcon de Europa square hasn't seemed to suffer in the same way with numerous restaurants and a lovely little church.
Would we stay there again? Probably but only if I could guarantee getting a room on the top floor away from the restaurant and if I could book on a room only or B&B.