Hi, can one base oneself at Seville and do a trip to Granada or is it better to stay at both places?
I would stay at both places. To see the Alhambra, it is better to stay 2 days there. Read Buying Alhambra Tickets Online.
Same situation with first time visit, after reading reviews for two hours decided to book the jr suite at Hotel Amadeus (music hotel) as most of the reviewers stated they had spent a lot of time reviewing/deciding on hotels themselves. The smaller rooms may be too confined so think about a larger room, but we aren't there to sit in the room anyway! Good luck, I'm sure you'll have a great time.
The latter hotel is reasonably priced and very convenient. Walking distance to the Cathedral and just across the way from the path leading up to the Alhambra's Justice Gate. Also a good spot for visiting Albaicin and Sacromonte.
The small rooms in the Amadeus in Seville have very little room to move around, although it is a lovely hotel.
In Granada, I would recommend the Abadia Hotel, just in the old town and an easy walk from the Cathedral and other sights in the centre. You would need to take a bus or taxi to the Alhambra. See http://www.abadiahotel.com/abadia/index.htm
A hotel with character downtown is the Tryp Albayzin, with a very good location.
As Nick says, the rooms at the Amadeus can be small, but the hotel itself is just beautiful, like being in the home of a rich and musical aunt with great taste in antiques, flowers and decoration. Incredibly helpful staff and some nearby places to eat that were magical. This was our second time to Seville and it didn't disappoint (plus the shoe shopping is out of this world)
I sprung for a superior at the Amadeus as I had budget hotels in other cities. So lovely- a small sitting area with a tiny couch and tv that I never used a huge bathroom with floor warmer and a comfy double bed with patio. It was recently remodeled and was separated from lobby by a small courtyard. I loved my stay there!
We enjoyed hotel Anacapri. Nice rooms, good service, great location.