Hostal Austria

This hostel offers reasonably priced accommodation in clean, comfortable rooms close to the city's main historical sights. It is by no means luxurious, but being family-run it is friendly. You can get to the Alhambra from here on foot in five minutes. You have the attractive Plaza Nueva just opposite, with its terraces where you can sit outside to eat, drink and relax. Calle Elvira with its busy tapas bars and late-night clubs, is pretty close as well. The Austrian family who run the place speak English and German, and the staff are happy to give guests the benefit of their local knowledge.