Irene / Alan hi;
Let me direct you to this site as a fountain of knowledge for all things to see / do in Granada and also a list of places to stay.
There are several mainstream hotels within Central Granada and also along the main A44 which serves as a bypass for the city.
We live about 40Kms Southwest of Granada and when we first came here we stayed at the Hotel Capitulaciones in Sante Fe. This is not a recommdation however as each trip into Granada would involve either a bus trip or driving into Granada and parking up for the day. We used it simply because it was central to our area of research for property and convenient for the airport..
You should be advised that much of Granada is at the moment subject to extensive roadworks along some of the main thoroughfares as work proceeds to introduce a cross city Tramway system (like Sheffield or Allicante...).
Driving in Granada is difficult at the best of times; some of the central area is off-limits to non essential traffic, far better to use the local bus services.at a fixed price of 1.20 Euros per trip.
Hope you have a good time; if the weathers good you should enjoy the city. If the weather is not so good...think Sheffield....!
fb