Hotel in Granada two nights mid-September

We stayed at the Hotel Anacapri in Granada. Very close to the sites, reasonable and English speaking manager (2 years ago).

I like this one with great view across to the Alhambra from its location in historic Albaicin.
http://www.hotelcasamorisca.com/en

We were very happy with Hotel Anacapri a couple of years ago.

We were very happy with Hotel Anacapri a couple of years ago.

Mike,
I'll add a different recommendation: the Parador in Granada is right within the Alhambra grounds, and we absolutely LOVED staying there. If you are over 50 (maybe it is 55), check the parador's reservation system (all the paradores use the same central reservation system), you might be able to benefit from their Golden Days special. The price is incredible with the special, and it includes a fabulous buffet breakfast. If you book a deluxe room with a view, you'll enjoy a little private balcony. It was fun to look toward the parador when we toured the Generalife gardens, and see our room (sort of pinching ourselves that we had such a wonderful location at such a great price).

The nice thing about staying in the parador is that you can stop by mid-day, taking a break from your Alhambra tour, use your private rest room, pick up a hat, or drop a jacket, etc........you are still within the grounds, so you don't have to 're-enter.' We also enjoyed lunch and dinner there...one option is inside and the other on the patio. The inside restaurant service was beyond excellent, and outside was good.

You may already know, but the parador is known as the Parador de San Francisco and also Parador Granada....it's the same place.

Enjoy your trip.

For the Alhambra, book early (first thing) tickets in the morning to beat the crowds. We were there in mid-March, well before the busy season, and it got crowded by late morning.

Thank you, all, for your thoughtful recommendations! We have booked the Hotel Anacapri for our 2-night stay in Granada.