Well, MadridMan, I think that Spain now reflects the prices of its fellow European countries. Staying at the Ritz in Paris is about the same as staying at the Parador in Granada. Granada is probably one of the most romantic sites in the world. The rose gardens, the view of the mountains under moonlight, and its history all weave a web of magic that gives this parador its panache.

The parador in Granada is worth every penny of what they charge! When I stayed two summers ago, the exchange rate was better, but still...

It's a truly magical experience to stay up there. You can wander parts of the grounds after the tourists have left. The rooms are lovely and well-appointed. The service is fabulous. The interior courtyard is beautiful. The views from the rooms are amazing--we could lean out our window and look up at the Generalife.

We went saying "this is a once in a lifetime experience, so it's worth the extra money." A few months ago, though, I asked my husband, would you splurge and do it again? Absolutely, he said. I couldn't agree more.

I have stayed in many paradors in Spain and I personally think the one in Granada is a bit overpriced.

Here would be my suggestion. Assuming you're going to have a car rental, I would stay at the Parador in Jaen. This is a very small town about an hour's drive from Granada. This parador is an old castle on top of this hill with a wonderful view of the surroundings. I stayed there for a few days back in 2001 and it was was exquisite. The rooms have stone walls and makes you feel that you are really in a castle. The other advantage of this parador is that it's midway between Granada and Cordoba, the latter being only an hour and a half by car. I used it as a base and explored the area including Granada and Cordoba. I personally spend more time in Cordoba because I felt it had more character than Granada. Aside from the Alhambra, I found very little else to appeal in Granada. Lastly, the Jaen parador is half the price of that in Granada at about 125Euros per night.

What about Hotel America ? Isn't it inside the Alhambra but less expensive than the Parador? Has anyone stayed there lately?

Give Hotel Casa del Capitel Nazari a try. It's terrific. Just a few steps off Plaza Nueva. They have a web site that is easy to navigate