I recently returned from my first trip to Barcelona. While there, we stayed in the Hotel Icaria on Avda. Icaria.
web page

As for location, this place is just 2 blocks from the Port Olimpico. In the summertime, I think this would be one of the best hotels to stay at in Barcelona. It was nice to be able to walk to the beach, even though there was no swimming going on. Also, there is a small shopping center just a block away. It has a grocery store and movie theater in case someone wants to pass the time. The nearest metro stop is about a ten minute walk. We ended up taking taxi rides a few times and it rarely cost more than 5 Euro, no matter where we were in Barcelona.

As for the hotel, it's fabulous. We paid 80 Euro per night, which was a fair rate considering this hotel is brand new and has any ammenity a modern hotel should. The rooms are decorated nicely and there is a restaurant and internet lounge. The also have free internet in the rooms. Some even have computers.

On our first night, we were on a floor where lots of folks were smoking, even though it was a non smoking floor. (Some signs might have helped)
We complained about it and they moved us to a huge suite, complete with a desk and large screen TV.

So, overall I was very happy with this hotel. I'd definately stay here again if I visited Barcelona.