We found it very difficulty to find accommodation on our first visit to Granada as there was a festival on in the city and we didn't start looking for somewhere to stay until two weeks before the trip. The hotel we stayed in on our first night (Hostal AB) didn't have any further availability and I think we had contacted almost every hotel in the city before we ended up taking a single room in Hotel Zaguan del Darro.
The room was quite small for two but it was a lovely hotel and it was in a good location, to the west of the Alhambra and at the foot of the Albaicin on picturesque Carrera del Darro. It cost 55 Euro per night and the staff were very friendly. There was a nice cafe next door open from 9am to midnight - a good spot for breakfast or for tapas in the evening.
We also stayed in this hotel during our visit in September 2009. Granada was not so busy this time as on our first visit, and the hotel had in fact reduced its prices, with a double room costing 49 Euro. Our room was again small but comfortable, with TV and ensuite bathroom. The view was of a side street off Carrera del Darro - rooms with a view of the Alhambra were also available but cost 59 Euros.
C/ Gran Via de Colon, 44, Granada
Cuesta de la Victoria, 9, Granada
Calle Benalua 11, Granada, Granada
Carrera del Darro 13, Granada
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Address: Carrera del Darro 23, Granada, Granada Province, 18010, Spain