Richard W.
Google
If you are very sensitive to noise, this might not be the best place for you. But if you enjoy a charming, historic hotel in the heart of a pulsating city, and you don't go to bed early (or you don't mind wearing earplugs if you do), you can't do better than Palacio de los Navas. Built in the 16th century, it has a charm that evokes Spain's colonial days... this hotel would not be out of place in Oaxaca, for example. The rooms surround a central courtyard with a small fountain. Our room was very comfortable, with a modern bathroom, and was well priced. There are a dozen restaurants on the same street as the hotel.
Hotel is no more than a 30-minute walk to the major sites... but uphill! The #32 bus is cheap (1.60) and taxis are not much more (around 5.00)... so unless you enjoy a challenging hike, save yourself the walk. Buy your Alhambra tickets a month in advance; they sell out. (They do release a few tickets at midnight for the following day, so if you forget to book in advance, give it a try... worked for me.)