You may also want to check out the Macia Plaza, a fine little hotel, right on the Plaza Nueva, and across the street from the bus stops. These little buses travel to the Alhambra every 10 minutes, or you can walk there in about 10-15 minutes. I booked the Macia Plaza for 2 nights, then changed to the Guadalupe for our last 2 nights, to be closer to the Alhambra. I have NEVER slept on such a hard bed as that provided by the Guadalupe! But for location, it was fine.