Here is what we recommend:

Santa Isabel La Real
A hot ticket this one, only 11 rooms set in the Albaicín near the famous Mirador San Nicolás. You'll be spoiled for beautiful views, flamenco sounds and cosy cobblestone streets to wander. 
TripAdvisor Says: "Just wonderful hotel" "Staff are very kind and available 24 hours a day" "Easy walk to town but bus stop right outside hotel"
Address: Calle Santa Isabel la Real, 17 y 19

Gar-Anat Hotel Boutique
A great location to spend time in Granada, you can't go wrong in this charming, renovated hotel beside the Realejo neighbourhood. They pride themselves on their quirkiness with interesting-style rooms and decor while still providing all the modern conveniences and even a 24/7 snack room with coffee/tea, etc. 
TripAdvisor Says: "Hotel is in immaculate condition and spotlessly clean" "Great breakfast available every morning" "Bathrooms huge and modern"
Address: Placeta de los Peregrinos, 1

Hotel Casa Morisca
Step into this charming Moorish-style house in a quiet area of the town, right on the edge of the Albaicín and in front of the Alhambra. Steeped in history, this hotel maintains its character while staying comfortable and spotlessly clean. 
TripAdvisor Says: "Small, intimate and comfortable hotel" "Terrific housekeepers" "Get a room with external windows"
Address: Cuesta de la Victoria, 9

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Hotel Casa 1800
This hotel is in a great location with direct views of the Alhambra Palace while still being a short walking distance to La Catedral, the Albaicín quarter and right in the midst of it all with many excellent restaurants and cafés nearby. 
TripAdvisor Says: "No request of the staff was too much - they are so helpful and polite" "Complementary afternoon tea!" "Excellent wifi coverage in all parts of the hotel"
Address: Benalua, 11
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Hospes Palacio de los Patos
Located on a great shopping street, this charming, converted palace is a sure way to experience 19th Century Granada with modern conveniences, including an indoor pool and spa to help you relax after a tiring day of sightseeing. 
TripAdvisor Says: "Make sure to request a room in the old part of the hotel" "Excellent service" "Truly luxurious" "Valencian chef does amazing paella" (a good find in Andalucia) "Beautiful outdoor dining area"
Address: Solarillo de Gracia, 1

BONUS TIP: If you're not in the mood for a hotel, or simply looking for a more autonomous accommodation with separate bedroom, living room and kitchen, we highly recommend Apartamentos Turísticos Alhambra in the Albaicín. Large, spacious rooms and apartments that are spotlessly clean, you'll find people staying here anywhere from 2 days to 2 months, they don't want to leave! One of the best attributes about the place is the shared rooftop terrace with the best views of the Alhambra in Granada - and what's more, it's very private so you'll almost always have this rooftop to yourself. Ana at the front desk is a wealth of information and advice about the city and the best places to visit, eat and drink so you won't go without. 

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