I was a bit shocked reading the negative reviews below, as we didn't think it was that horrific. It was what you would expect for 25 euros a night really. We were there for one night, passing through Nerja on our way to another destination.
The owner was very friendly towards us actually, and we got free parking, internet usage, and lots of advice on where to go to eat etc. He was also very relaxed about what time we had to check out which was a nice change from other places we stayed at.
It is true that the room was not clean though, and the beds were questionable. Fairly large bathroom, and a nice balcony, but this did not really make up for the poor quality of the room. We found the fridge in our room useful.
The hotel is slightly away from the centre of Nerja, but all it takes is an enjoyable 5 min walk and you're there. The location suited us but might be for those who want to be closer to the beach.
Breakfast was in a nice little outdoor patio area and we enjoyed it.
Having said all this, we probably wouldn't come back and would splash out a bit more on somewhere nicer next time.More