Stayed here in August for 3 nights after our other hotel was overbooked for the remainder of our stay.
The hotel is on a side street a few blocks outside of the main streets (the ones near the town square).
A secure hotel, they lock the front gates at all times. This is very important to me; other hostels had people walking in and out with no regard for who was coming in. I never had to wait more than two seconds for the night watchman or the hotel staff to open the gate for me.
The hotel is family-owned and the staff is super nice. The rooms are quite large-- I believe there are only 9 rooms--and are all air-conditioned (with a wall unit) and have big bathrooms, tile floors, and the room we stayed in (#3) had a nice balcony. I believe they all have balconies though. I did not find the hotel to be noisy due to its location on a street. ALL Granada's hotels are on streets..!
The breakfast area is small, but the food they made us was delicious. Gallo pinto, eggs, toast, and of course, fruit!
The night watchman was super nice, and hardworking. If you go there, try and tip him!
All in all, a great stay! No need to stay in one of Granada's backpacker hostels... nor the giant American-style ritzy places.. this is a perfect middle ground. :)