Casa Morisca Hotel, Granada $$$$
Concierge.com's insider take:
Many of the Albaicín's traditional dwellings are being turned into boutique hotels, but Casa Morisca—a late-15th-century house with a lovely courtyard at the foot of the Alhambra hill—wins hands down for location alone. Most rooms overlook the Alhambra and the Generalife gardens, which are particularly wondrous at night. Some of the 14 rooms have their original Moorish wooden ceilings, cut with intricate designs, as well as terrazzo floors and Moroccan cabinets or armoires. In case you were wondering, the hotel's name is linked to Morisco, the name given to Muslims who stayed on after the Catholic Monarchs conquered Granada.