This hotel is in a great position overlooking the Plaza de Bib Rambla, which I'm sure would be lovely in the warm weather. (We were there in January). Apparently not all rooms overlook the plaza so you'd need to ask. The rooms were pretty standard, a little dated, but comfortable, clean, quite spacious and quiet. For 45 euros per night including breakfast the value is excellent.
I have stayed in a number of budget hotels in Spain and never had such a good breakfast.
There was cereal, eggs, bacon, tortilla, cakes, toast, yoghurts, etc

My wife and I stayed three nights in a double room of Hotel Los Tilos in January 2012. We took this hotel given the fact that good budget hotels seem to be pretty elusive to find in Granada (still we paid €145 for three nights total). Our overall experience was good. The hotel is centrally located, in a square which, though busy during the day, is quiet and tranquil in the night. It’s very close to Granada’s Cathedral and Royal Chapel, and at walking distance from Plaza Nueva and the Albayzin district. Its location is also handy for shopping down Calle de Zacatin. The rooms were soulless but big, well equipped and very clean. As it seems to be the case with so many Spanish hotels of this budget, walls are wafer thin, and you can hear pretty much everything going on in the neighbouring rooms (earplugs recommended then). The staff were generally grumpy but serious and efficient. There is free wifi: the hotel says it is available in public areas but the signal was strong enough for my phone to get internet access inside my room). Finally, there is a nice terrace in the fourth floor with great views towards the Alhambra and the Cathedral.

We spent 5 absolutely lovely days in Granada in mid-September 2011.
We were only intending on staying for 3 days and 2 nights but due to an illness (I got food poisoning from a restaurant in Cordoba) we extended our stay by 3 days and cancelled our scheduled time in Barcelona.
The hotel's owner, Jose Maria, was instrumental in cancelling our Barcelona reservation at no cost to us.
He also directed my my wife to a good pharmacy for medication that helped me a great deal.
Jose Maria went away beyond the call of duty to help me get through a rough few days.
Once recovered we managed to see the best that Granada had to offer - including the Hotel Los Tilos.
The location was excellent and quiet despite being in the heart of the city (a short block away from the Cathedral).
The rooms were spotlessly clean, the beds very comfortable and the breakfasts (included in the room rate) were excellent, offering a very good variety of fresh fruits, cereals, eggs, baked goods, preserves, coffee, tea, juices, yogurts, etc.
We enjoyed our stay immensely and would return to Hotel Los Tilos in an instant.

Close to the cathedral and on the square. We only had one night here, but if time allowed we would have stayed longer in this fascinating city. We had the best breakfast of any of our stays in Spain. Go up to the top floor balcony for a great view of the city. The room was spacious, but scarcely decorated.