In March 2009 I stayed for a couple on nights at the Hotel Carmen.
It cost 40 euros per night.
Maybe that is an off season cheap price but in Granada city the same grade room would cost at least 70 euros.
In March the hotel had a lot of elderly people.
The hotel is nothing special but is comfortable and has aircon and a big bathroom.
There is a good Italian restaurant across the road. (Da Nicola)
200 metres an expensive one (Yerba Buena) which looked good but I didn't go in
further up the road away from the sea a really good cheap
fish restaurant called Jesus y Lute
I made the booking by phoning. (In Spanish)
I don't know if they speak English.
Here are the details. http://www.hotelscombined.com/Hotel/Hotel_Carmen_Almunecar.htm?a_aid=21422
Hotel Carmen Almuñécar Avda de Europa 19 | 18690 - Almuñécar (Granada) España
Teléfono: 958 63 14 13 / 958 63 25 11 - Fax: 958 63 48 89