On my holiday in Spain, we just did a stopover in Alicante. We stayed in Hotel La Reforma. The hotel in Alicante was pretty basic, but perfect for our purpose!
The hotel was centrally located so that you could explore entire Alicante. Although it was a very simple hotel with simple rooms, it had a cafe and a bar, which was really nice in the evening.
For low budget travellers or backpackers the hotel was very good! I was really content with the hotel!