Oasis
Nice hostel, well located which offers a good free breakfast. The kitchen is well equipped too and there’s a local food market on the doorstep. There’s a small pool on site and every evening they’ve got a FREE happy hour. Yes, you’ve heard correctly they give out free drinks to backpackers. If that’s not great marketing, what is?

They also have as sister hostel in Lago Apoyo called Paradiso which they organise trip to on a daily basis. 

Townhouse hostel

This is the hostel affiliated with Treehouse. It’s smaller than Oasis and therefore has a more convivial atmosphere. The dorm rooms are much smaller which in this case not an advantage. This is a good spot if you’re a solo traveler and want to go to the Treehouse party as the shuttles will arrive and leave from here. 

Spend a day at the Lago Apoyo
I would recommend staying overnight here too, it’s very beautiful and relaxing. We stayed at the Paradiso Hostel which is affiliated with Oasis hostel in town. This hostel is more like a hotel, they’ve got sushi on their menu and lots of free activities such as kayaking and paddle boarding. On Monday nights they host a small DJ event with a fire show and a barbecue.
Departs: Daily departures from Oasis and Townhouse hostel
Click here for directions

Go Raving and zip lining in the jungle
The Treehouse hostel, is located in the middle of the jungle. Every Friday, they host a DJ night where backpackers gather dance until dawn. We had a fabulous time here although the hangover was painful. You can stay on site but beware that Fridays are their busiest day so make sure to book in advance. If they are sold out, don’t worry you can still go to the party and come back with a shuttle, the latest one will bring you back to Granada at 4am. 

If you’re not into raving, you can still enjoy the Treehouse hostel any other day of the week apart from Sunday and Monday when it’s closed. They have an open mic on Thursday as well, an on site masseuse and a $3 zip line.

Pita pita
This place makes the best middle eastern, Israeli food in Nicaragua (according to me). They also have a pizza oven. All the ingredients are super fresh and cooked to order. If you’re on a budget take advantage of their $5 lunch deal which includes a pita and a drink.