Hostal Antares is a nice place to stay in the heart of Granada. Is just 2 minutes walking to the Cathedral and plaza Nueva where you can take the bus to the Alhambra. The place is well located and the owner is a great man, friendly and asking all time if you need something and giving you useful information. The place is quite clean, although they don't provide you with a towel for the shower nor shampoo so you should bring your own.
I was really comfortable in the room. Thanks
I spent one night, sharing a room with other 3 people. The hostel is well located, not too far from Victoria Station. They gave me bed sheets at arrival for a refundable deposit of 10 pounds. We had to sleep with the windows opened because it was too hot inside the room, and as it faced to the street, I could listen all the traffic.