I visit alicante regulary and used 4 hotels.A lot depends on what you want to pay.I have used 2 right on the sea front next to the beach.They are the Melia Alicante and the Spa Porta Maris,both are very good but not cheap.I have also use the Med Plaza which is in the Town Hall square and only a minute from the beach and marina, and the Kris Maya which is at the back of the castle and a short walk to the front.Again both are very good but the Med Plaza is 4 star and expensive.The Kris Maya was the cheapest but its still a nice hotel.

Personally I would go for the ones on the sea front as they are very central for all ameneties.

When are you going? The best time to visit Alicante is the wee of the Fiesta around the 24th June.

We stayed at the Tryp Gran Sol last October. The position was great, right on the esplanade, and as it is the tallest building in Alicante, the views are unbeatable! The rooms were ok, but not great, and no balconies. The Melia looked nicer, but was quite a lot more expensive.
kate