[2] The municipality borders Pinos Genil, Dúdar, Quéntar, La Peza, Lugros, Jérez del Marquesado, Trevélez, Capileira and Monachil.

As long ago as the early 1920s the Duke of San Pedro Galatino, owner of the famous Alhambra Palace Hotel in Granada, decided to build a luxurious mountain lodge in the untouched countryside above Güéjar.

The hotel, which offered guests all of the comforts of the time, such as electricity, central heating and hot water, was inaugurated on 20 March 1925.

[4] The Duke had also long dreamed of constructing a tramline from Granada to just above Güéjar, from where it would only be a short carriage ride to the hotel.

Shortly afterwards the Spanish Civil War broke out, and as the front line ran very close to the hotel, it was used as barracks, and was badly damaged as a result.