You are possibly being optimistic with €50 if you want a breakfast included. This is not a usually the norm. in many pensions, hostals, etc and it will be a better deal and value, almost certainly, if you went to the cafe down the street or around the corner for breakfast.

For Granada I suggest - http://www.hostalrodri.com/

Rodri is an excellent suggestion in Granada.

In Sevilla, I can recommend great value Hostal Museo, ensuite facilities, tv, safe etc. About 50€ for a double. Have stayed here several times. Next door to the Fine Arts museum and the center of town. 10-15 minutes walk to the Cathedral and the most obvious sights, but much more local feel here in the San Vicente area than in the beautiful and touristy Santa Cruz district. http://www.hostalmuseo.com/english/index.php

Reviews: http://www.booking.com/hotel/es/hostal-museo.en.html?aid=311984;label=hotel-93609-es-gRua_ECNVRnlGaOcS9pm6gS4709377603:pl:ta:p1:p2:ac:ap1t1:neg;ws=&gclid=CK-h2v3IwbICFYR4cAodlEUAow

Ten times more interesting and half the price to have breakfast in a local bar. This is one of the things I always miss the most about Spain. Bodegón Alfonso XII is 80 meters from Hostal Museo and my usual breakfast place when staying here. http://www.andaluciadirect.co.uk/bodegon-alfonso-xii

Hostal Museo is also close to two of the best tapas bars in town.
Eslava: http://azahar-sevilla.com/sevilletapas/category/eslava/#
Bodega Dos de Mayo: http://www.tripadvisor.co.uk/Restaurant_Review-g187443-d1749980-Reviews-Bodega_dos_de_Mayo-Seville_Province_of_Seville_Andalucia.html

Many thanks for the responses. I f check these out and definitely source breakfast elsewhere.

Kimhe - we spent a couple of nights in Hostal Museo earlier this week. An excellent recommendation. Thanks you.