I am traveling to Spain and my tentative itinerary is as follows
9/3 Arrive Madrid
9/4 Madrid
9/5 Day trip Toledo/ Segovia
9/6 Fly to Seville, rent car
9/7 Seville
9/8 Drive to Granada
9/9 Granada -Alhambra
9/10 Granada
9/11 Fly from Granada or Seville to Madrid, fly home.
Are we trying to fit in too much? Should we leave for Madrid on the 10th? Flight home is at 5:30 PM on the 11th. Can I drop off car in Granada & fly from Granada to Madrid or should I return to Seville & fly from there? Any suggestions on airlines/car rental companies?
Can anyone recommend a hotel in Granada, money not an issue?

Your itinerary seems like you're packing a lot in 8 days. Any particular reason for making a big triangle around the country? All of the cities you listed are wonderful places, but with only a day or two in each of them, you'll be on the go more than you will be able to enjoy Spain.

WMO: Regarding the rental car in your itinerary, you would need it only for one day, when you drive from Seville to Granada. To keep it in either city would be a very inconvenient and expensive adventure if you don't need it for onward travel.

is there any reason you're flying from madrid to seville as opposed to taking the AVE? Its only a 2.5 hour ride and quite scenic (well, for a kid like me who doesn't see olive trees everyday) - considering the mess one might go through to get to the madrid airport (depending on where you're staying), getting there with a lengthy advance, etc, you might be able to pick up some extra time...

i personally don't think you're doing too much, but then again my holidays are almost always 10-day max and it seems that a lot of people on here take 2 week vacations...for what its worth we were in spain for the same timespan as you last year and we went to all cities you mentioned plus we added 2 more to the list--your mileage may vary, of course...but i don't think this trip looks hectic by any means...

I think you are doing a lot in a little time but if you don't mind moving fast, it can be done. I agree with the suggestion to take the AVE from Madrid to Seville. I would suggest spending more time in Seville than Granada. The Alhambra is exquisite but, once you see that, there is more to see and do in Seville. I would leave for Granada on 9/9, see the Alhambra on 9/10 and return to Madrid on 9/11 early enough to make your 5:30 flight. If money is not an issue, try to reserve at the Parador in Granada. It is right on the Alhambra grounds and is a wonderful place to stay. Unfortunately, it is often filled months in advance.

wmo writes:
<<...Are we trying to fit in too much? Should we leave for Madrid on the 10th? Flight home is at 5:30 PM on the 11th. Can I drop off car in Granada & fly from Granada to Madrid or should I return to Seville & fly from there? Any suggestions on airlines/car rental companies?>>

I have seen numerous posts about cheap airfares: Granada-Madrid, so that's what I would recommend. Check out Spanair & Air Europa websites for their fares. Iberia may compete with them 'head to head' on some routes so you should probably check them out also.

I agree with fastnbulbous: take AVE to Sevilla. There are several car rental Agencies at Santa Justa Renfe station (incl. Avis). But you don't really need a car in the cities. Rent one as you leave Sevilla and drop it off in Granada.

I would drop one of your Granada days in favor of an extra day in Madrid: One day just doesn't do Madrid justice.