Granada is a beautiful city built along the shores of Lake Nicaragua. It’s host to several Spanish colonial landmarks that draw thousands of tourists each year. The Cathedral of Granada resides in the city’s main square, dubbed Central Park, and it’s a neoclassical structure that’s dated back to the 16th century.

The main plaza is overflowing with elaborate fountains, and it also plays host to a plethora of restaurants, market stalls selling souvenirs, and various places to sit and relax while people watching. 

Where are you heading next? Check out Best Hostels in Omepete IslandBest Hostels in Ometepe

Exploring the cathedral and Central Park is the main tourist draw in Granada, though it’s not the only thing to do. The nearby Apoyo Lagoon sits between two volcanos, and it happens to be the perfect temperature for watery activities. Kayaking, paddleboarding, and swimming on its sandy beaches are all common pastimes.

The nearby Masaya Volcano is also a great option for the adventuresome folks, offering aerial views of red-hot magma slowly flowing in its crater. 

Granada is popular among backpackers, therefore there are lots of options for hostels. If you’re planning a trip here, here are six hand-picked hostels that offer comfortable accommodations at an affordable price.

Hostel Oasis Granada 

Book on Hostelworld Book on

from $9 / 10-dorm 4.4/5 Map


  • They have a pristine pool to relax in.
  • They have a nice bar with a free happy hour every night.
  • Free 10-minute international phone calls daily.

Oasis Granada is a great hostel for backpackers that want a little fun and practicality on their stop through Granada. 

For entertainment and socializing, there’s a lovely swimming pool to relax in as well as a bar with a free happy hour to share a drink with fellow travelers. There’s also a movie night every night on their big-screen TV. 

On the practical side of things, there’s a free buffet breakfast of pancakes, oatmeal, fruit, and milk, and you’re welcome to prepare your meals in the fully-equipped kitchen. The dorm rooms all come with fans to keep you cool on the warm nights as well as electrical outlets to keep all your gadgets charged. There’s also 10-minute international phone calls they have daily. This is a great hostel with an open and chill vibe.

Heading to Leon? Check out Best Hostels in Leon for backpackers

De Boca En Boca

Book on Hostelworld Book on

from $8 / 10-dorm 4.6/5 Map


  • They have a nice bar for sharing a drink with your fellow travelers.
  • There’s a nice rooftop terrace for relaxing and watching sunsets.
  • They have a shuttle service for picking you up and bringing you to the hostel.

De Boca en Boca is a quaint yet colorful Hostel located in the middle of downtown only two blocks away from La Merced Church. Their rooms are comfortable and clean, and they ave options with and without private bathrooms.

They have a nice bar to share a drink with your travel buddies, and there’s an open kitchen if you want to prepare meals. There’s also a nice common area outside with amazing hammocks to laze about in as well as a rooftop terrace if you want to chill out with a view.

The staff is extremely knowledgeable and helpful, and they’ll help you organize tours and outings all around and outside town. They also have a shuttle service to ferry you around to your destinations.

Hostal Azul

Book on Hostelworld Book on

from $7 / 14-dorm 4.6/5 Map


  • They hold daily activities and a weekly pool day for guests.
  • There are board games, a book exchange, and plenty of things to do in the common area.
  • They give you a free 5-day gym pass when staying.

Hostel Azul is a place full of beautiful rooms and great vibes. The staff focuses on making your stay both pleasant and memorable, and they go out of their way to help you book and plan your adventures while in Granada. 

The hostel is comfortable and spacious and has plenty of common areas to mingle with travelers and listen to their stories. There’s also a kitchen where you can prepare food and they offer a free and delicious breakfast that changes daily. 

For activities, they hold a free pool day weekly as well as other activities throughout the week. There are board games, a book exchange, and a guitar to play in the common area. If you’re looking to keep up your workout routine while you’re on vacation, they give their guests a free 5-day pass to the gym.

Selina Granada 

Book on Hostelworld Book on

from $10 / 10-dorm 4.2/5 Map


  • There are plenty of activities here, such as ping pong and foosball. 
  • They have amazing co-working spaces for digital nomads and remote workers. 

The Selina in Granada, like other Selina locations, is an upscale hostel with a modern flair and fun atmosphere. This location is an old building downtown that’s been adorned with plenty of bohemian wall art and murals, giving it an urban vibe. 

Selina has everything you’d expect from a great hostel, including comfortable rooms, a full-size kitchen, and roomy common areas for hanging out and getting to know folks.

There are also nice common areas with ping pong and food all tables and plenty of comfy chairs and couches for relaxing. There’s also a huge covered porch with hanging lounge chairs for enjoying the evening air. 

Selina is known for their co-working spaces and this location is no exception. There are huge tables with outlets for getting work done, and there’s even an area closed off in glass for the odd conference call. If you’re a digital nomad passing through Granada, definitely give Selina a close look. 

The Townhouse

Book on Hostelworld Book on

from $7 / 14-dorm 4.8/5 Map


  • They have a huge pool surrounded by lounges and hammocks. 
  • They have their own bar, The Vinyl, with a nightly happy hour. 
  • They host events regularly, like open-mic nights and beer pong tournaments. 

The Townhouse is a fantastic little hostel located in the heart of Granada that boats good vibes and a welcoming atmosphere. It’s a clean hostel full of character; artwork from past and present guests line the walls of this place, and its downtown location gives it an urban feel. 

This hostel is designed with backpackers in mind and it’s apparent. They have free drinks every night at sunset to encourage socializing.

There’s a massive pool with lounges and hammocks for getting together and relaxing. And there are weekly events like open-mic nights, pool sessions, and beer pong tournaments. There’s even a daily happy hour at their in-house bar, The Vinyl. 

The staff here is knowledgeable of the city and surroundings, and they’ll help you plan tours and get set up for any of the various excursions throughout the area. 

Hostel Paradiso

Book on Hostelworld Book on

from $10 / 12-dorm 5/5 Map


  • This is located right on the lake. 
  • They have their own bar and restaurant that serves delicious drinks and comfort foods. 

Hostel Paradiso is a wonderful hostel located right on the lake. There’s direct access to the water with a sandy beach that leads right up to the hostel.

For on-the-water activities, there are free kayaks, a dock, and a few other water toys. There are patio views, landscaped gardens, and an area with loungers, sun chairs, and comfy hammocks. 

Their rooms are spacious and comfortable, and there’s one that offers a beautiful sunrise over the lake.

They also have their own bar and restaurant that serves bubbly beverages, tasty cocktails, and homemade comfort foods at a very reasonable price.