A 2-star hotel with reasonable prices, the Hotel Barrameda is clean, modern and well-appointed. It's in a perfect location on the central square, Plaza del Cabildo, which is chock full of tapas bars (including the famous Casa Balbino) and cafés, is close to most of the sights, and about a 10-15 minute walk from the beach. The market is just around the corner as well, with the adjoining streets full of all kinds of colourful stalls, selling everything from hats to live camarones (tiny prawns).
The hotel has a pleasant reception area with a breakfast room (though we opted to breakfast out) and a large attractive patio filled with plants, marble tables and wicker chairs. There's also a solarium on the roof, though we forgot to go up to see it (oops).
The rooms are quite spacious, with comfortable beds and AMAZING pillows, flat-screen TV, a big desk, air conditioning and free Wi-Fi. The bathrooms are roomy with a walk in shower. Unpretentious, with everything you need for a short stay. If possible, opt for one of the rooms in the newer section. The staff was very helpful, moving us from the first interior standard double room in the older area to a more modern style room which I personally found brighter and more cheerful. It had a balcony facing a side street full of vendors from which we could also see the main square. Next time I will definitely splash out on one of the superior rooms, which balconies looking out over the plaza.