MadridMan has compiled a fairly extensive collection of cheap lodgings in Granada including hostels, pensions, & youth hostels. One can read reviews and recommendations of several of Granada's lodgings in the "Hostels & Other Lodgings" forum of MadridMan's ALL SPAIN Message Board. One should consider choosing a location somewhere in or near the old city center; somewhere around the cathedral, Plaza Nueva, or Plaza Bib-Rambla as all interesting places in this zone are reachable on foot. If you choose a lodging location next to the Alhambra you'll find it necessary to take a taxi to some of the farther parts of Granada City otherwise you'll be spending a large part of the day walking. Some of these MOST interesting places to visit include the Alhambra & Palacio del Generalife, Albaicín/Albayzin, Capilla Real, Cathedral, Casa de los Tiros, & El Bañuelo to name only a few.

During my last visit to Granada (November 2006) I stayed at 2 different lower-cost establishments, eaching having its own style. I feel comfortable recommending all based on price-point, location, and ammenities offered. Lower-cost establishments, in general, will never satisfy your every want, desire, or requirement but these 2 did a pretty good job making my stay in Granada rather comfortable. These establishments, in chronological order of visit, were: Hostal Austria (near Plaza Nueva - along the road to the Alhambra), Hostal Costa Azul (near Plaza Bib-Rambla and bar-filled Calle Navas - nice!).