Granada, Nicaragua is a must-visit spot in one of my favorite Central American countries. This picturesque lakeside town boasts charming cobblestone streets, friendly locals, brooding nearby volcanoes, and a beautiful yellow cathedral smack dab in the middle.
For any backpacker traveling through Nicaragua, you will find yourself in Granada at some point.
With tourism on the rise in recent years, a boatload of hostels have sprung up all across the city. Where does one even begin to look for the best hostels in Granada for backpackers?
Some hostels in Granada are CERTAINLY better than others.
That’s exactly why I wrote this super in-depth guide to the best hostels in Granada.
Once you have all the insider information regarding Granada hostels, booking your accommodation is easy and stress-free.
Crush your Nicaraguan travels with the help of this Granada hostel guide, and spend your time doing the things you love (and not worrying about hostels too much) whilst backpacking Nicaragua…
Quick Answer: The Best Hostels in Granada, Nicaragua

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The 10 Best Hostels in Granada, Nicaragua
Backpacking Nicaragua can be a real dream. But it can also be a horrible trip if you don’t have a nice accommodation. Don’t worry, we’re here to help!
The main thing you want to look for in hostels are facilities, location and safety. Nicaragua is pretty safe, but that doesn’t mean that there are exceptions. Make sure you read the reviews before you book and look for lockers to store your luggage properly.

De Boca En Boca – Overall Best Hostel in Granada

For the best hostel in Granada, De Boca En Boca is a great shout. It’s hostel-y, so also pretty affordable (who doesn’t like a bargain?), but it’s also well thought-out and heavy on the design-magazine-aesthetic. Tick and tick. Add hammocks for chilling, a make-your-own-breakfast station, tropical plants for extra aesthetics, friendly staff, and this stylish little place becomes a lot more than a youth hostel in Granada: it’s a tiny serving of personal paradise for however long you stay here.
Hostal Azul – Best Cheap Hostel in Granada

It’s another budget hostel in Granada in the form of the always-very-clean Hostal Azul. The rooms are stylish and spacious with a cool minimalist feeling, there’s a chill little garden to hang around in, they do a free breakfast, they have a cafe/bar that serves up tasty Mexican food and drink, and away from this cool hostel itself the cathedral and popping main street of Calzada are not very far away at all. So combine a looked-after space and cool decor with a great location and Hostal Azul looks more and more like a top hostel in Granada. Plus it’s cheap.
Hostel Oasis Granada – Best Cheap Hostel in Granada #2

Swimming pool! A daily happy hour from 5pm (that means free rum for an hour)! Filtered water! Yep, the perks at Hostel Oasis Granada are many. And that’s without mentioning the free all-you-can-eat breakfast – or the ‘light sleepers’ policy they have of quiet time after 11pm. So you probably won’t be partying here, but if you fancy a chilled place then this Granada backpackers hostel is a good choice. The kitchen is a little bit basic but other than that there are plenty of places to hang out and enjoy your stay in Granada. There’s a reason it’s called ‘Oasis’.
Selina Granada – Best Hostel for Digital Nomads in Granada

A very slick, very design-y budget hostel in Granada, the stylish Selina Granada is, in a word, sick. Coolest hostel in Granada. 100%. Not only does it look amazing, it’s got everything you need for funding your travels as a digital nomad – namely a cool office-y coworking space that literally has us wondering why more hostels don’t do this. It is highly, highly cool. Add to this daily wellness activities, ping pong table, places to chill and meet fellow travellers (or network with fellow digital nomads), and you have yourself an easy contender for best hostel in Granada.
Casa del Agua – Best Hostel for Couples in Granada

Casa del Agua. Well, it’s not exactly a budget hostel in Granada, and comes without ‘dorms’ as such, but couples will love it. It isn’t ultra cheap but it is ultra nice. It’s in an old colonial house for one, and is literally in the heart of the old colonial centre of Granada, features TWO courtyard pools, rooms that look over them, bright decoration… the list goes on. So for a great location and facilities, plus friendly vibe, this place wins. Their motto is “Casa del Agua is just like home, only better.” So… yeah!
Encuentros – Best Party Hostel in Granada

Located on the buzzingest main street of Granada, you say? We’re in. And not only is the enigmatically named Encuentros set on La Calle Calzada – where bars and clubs are open till midnight – but this recommended hostel in Granada is also up for a party itself. In fact, on Fridays, it hosts a party that’s also open to the public which goes till 2am. Which sounds fun. But wait, there’s more: Encuentros has a pool, rooftop terrace complete with jacuzzi, boasts 3 bars, and can also give you VIP access to many of the bars and clubs down the main street. Now that is cool.
More Best Hostels in Granada, Nicaragua
El Caite Hostel

Another Granada backpackers hostel with an ideal location, El Caite Hostel is where you’ll want to be if you plan on hitting up all the cultural hotspots of Granada: Fortaleza de la Pólvora is just a few minutes’ walk away, and the Central Park and other iconic landmarks and UNESCO sites aren’t far either. El Caite also has a relaxed atmosphere – if you’re not here to party you’ll be happy about the chilled vibe here. That said it’s still a sociable place to meet fellow travellers and make friends (if you want). The place looks cool, it’s got a pool, and, um, it’s great!
Hostel Paradiso

Located literally ON Lake Nicaragua, with its own slice of beach, this youth hostel in Granada is a good place to go if you like chilling on the sand with the prospect of messing around on the water to boot. Hostel Paradiso not only in name, huh? So with this focus on the lake, they’ve got kayaks for you to use free of charge, a floating dock, some water toys, volleyball, ping pong – and a bar right at the water’s edge. Which is cool AF. It’s not quite as cheap as other hostels but with its stunning natural setting, there’s not much in it if lakeside living sounds about right for you.
Hostal El Momento – Best Cheap Hostel in Granada #3

While dorm prices in a Granada backpackers hostel remain sorta similar across the board, this one just about pips all the others to the post. Its private rooms are pretty much a bargain too. So for a budget hostel in Granada with a relaxed atmosphere, a decent (and free) breakfast, luggage storage if you plan on leaving then returning, a bar/restaurant, and a little kitchen, all wrapped up in a cute, cosy and colourful setting with chill common areas, then Hostal El Momento is where you should be directing yourself in Granada.
La Siesta – Best Hostel with a Private Room in Granada

Hey, the clue’s in the name: La Siesta. It’s a sleepy hostel in a quiet location that allows for a chilled environment – which is perfect for anyone wanting a bit of quiet time on their Nicaragua trip, or anyone with a natural aversion for overly loud and extra environments. We understand. So at this top hostel in Granada, you’ll find a little bit of solace, places to sit and socialise including a chill tropical garden, hammocks for actual siestas, private rooms (there’s also a 4-bed dorm) – and all at a budget-friendly price.
Why you should travel to Granada
The time has come for the epic hostel journey to end: that’s a wrap on my best hostels in Granada list.
I know that now you are ready to book the right hostel for yourself based on your own individual needs as a backpacker.
Granada really does have a hostel for everyone, so I hope you found my guide to the best hostels in Granada informative for you.
And if you like it there and want to stick around, there are some fantastic eco-lodges across the lake in the Isletas de Granada that offer a budget and environmentally friendly stay.
Still feeling unsure? I know that so many choices can be overwhelming! If in doubt, I recommend just going with my top pick for the best overall hostel in Granada: De Boca En Boca Hostel. See you down the road my friends…

Travel Safety Tips for Granada
ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.
They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.
SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!
Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.
More Epic Hostels in Nicaragua and Central America
Hopefully by now you’ve found the perfect hostel for your upcoming trip to Granada.
Planning an epic trip all across Nicaragua or even Central America itself?
Don’t worry – we’ve got you covered!
For more cool hostel guides around Central America, check out:
Over to you
By now I hope our epic guide to the best hostels in Granada has helped you choose the perfect hostel for your adventure!
If you think we’ve missed anything or have any further thoughts, hit us up in the comments!
- Check out our extensive guide to backpacking in Nicaragua for a wealth of info!
- Prepare for your trip with our backpacking packing list.
- Get ready for your next destination with our ultimate Central America backpacking guide.





