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

Best Hostels in Granada, Nicaragua
Hola and welcome to the best hostels in Granada guide!

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. 

Overall Best Hostel in Granada – De Boca En Boca

De Boca En Boca best hostels in Granada, Nicaragua
De Boca En Boca ticks all the boxes that make a good hostel a great hostel. De Boca is the best hostel in Granada both for price, and the overall experience.
  • $
  • Free Breakfast
  • Outdoor Terrace
  • No Curfew

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.

Best Hostel for Solo Travellers in Granada – Surfing Donkey

Surfing Donkey best hostels in Granada, Nicaragua
At the Surfing Donkey, there is an unending list of social activities making it the best hostel for solo travelers in Granada.
  • $
  • Free Breakfast
  • Swimming Pool
  • Towel Included

Despite its ToTaLlY wAcKy name Surfing Donkey is actually pretty cool. And even cooler if you’re on the lookout for people to meet and hang out with as a solo traveller. I mean, there’s a free cocktail on arrival so we guess that sorta sets the standard. But it’s not a mad party hostel. There’s a pool, giant Jenga, ping pong, and Zumba, salsa classes, yoga, city tours, a pub crawl, and a bar. There’s loads of stuff to do. And plenty of space to do all that stuff with other people. So if you wanna meet some fun people this is the top hostel in Granada for that. Plus it’s on the shores of Lake Nicaragua.

Best Cheap Hostel in Granada – Hostal El Momento

Hostal El Momento best hostels in Granada, Nicaragua
Comfy, bright, and free breakfast! This town is full of cheap hostels, but Hostal El Momento is the best cheap hostel in Granada.
  • $
  • 24-Hour Reception
  • Free Breakfast
  • Bar/Restaurant

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.

Best Cheap Hostel in Granada #2 – Hostal Azul

Hostal Azul best hostels in Granada, Nicaragua
Hostal Azul is another one of the best cheap hostels in Granada
  • $
  • Bar & Cafe
  • Free Breakfast
  • Book Exchange

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.

Best Cheap Hostel in Granada #3 – Hostel Oasis Granada

Hostel Oasis Granada best hostels in Granada, Nicaragua
Hostel Oasis Granada tops my list of best cheap hostels in Nicaragua.
  • $
  • Bar
  • Free Breakfast
  • Swimming Pool

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’.

Best Hostel for Couples in Granada – Casa del Agua

Casa del Agua best hostels in Granada, Nicaragua
Beautiful architecture and attention to detail makes this hostel stand out. That is why Casa del Agua is the best hostel for couples in Granada.
  • $$
  • Free Breakfast
  • Swimming Pool
  • Heritage Building

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!

Best Party Hostel in Granada – Encuentros

Encuentros best hostels in Granada, Nicaragua
The picture might not show it, but on the right night Encuentros hostel is a hell of a good time and the best party hostel in Granada by far.
  • $$
  • No Curfew
  • 24-Hour Reception
  • Bar(s)

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.

Best Hostel for Digital Nomads in Granada – Selina Granada

Selina Granada best hostels in Granada, Nicaragua
With a spacious, well-lit, modern working space, Selina Granada earns the rank of best hostel for digital nomads in Granada.
  • $$
  • Bar
  • Self Catering Facilities
  • Coworking Space

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.

Best Hostel with a Private Room in Granada – La Siesta

La Siesta best hostels in Granada, Nicaragua
Looking for peace and quiet? La Siesta is the best hostel with a private room in Granada, and of course the best for taking siestas as well!
  • $$
  • 24-Hour Reception
  • No Curfew
  • Towels Included

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.

Things DO go missing sometimes…

lock iconPsst! Heading to a hostel? Don’t forget to pack a padlock! It’s well worth having one so you can secure your locker and protect your stuff!

More Best Hostels in Granada, Nicaragua

El Caite Hostel

El Caite Hostel best hostels in Granada, Nicaragua
Nice location, budget-friendly, and all around a good spot for travelers to rest up.
  • $$
  • 24-Hour Security
  • Air Conditioning
  • Swimming Pool

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

Hostel Paradiso best hostels in Granada, Nicaragua
Looking for a LAKESIDE view? Hostel Paradiso is the best hostel in Granada for lake views.
  • $$
  • Bar & Restaurant
  • Free Kayak Hire
  • Beach

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.

The Best Travel Backpack?!
Nomatic 30L Travel Bag

Pssssst! Not picked the perfect travel backpack yet? The Broke Backpacker team has tried out over thirty backpacks this year! Our favourite carry on backpack is the Nomatic Travel Bag.

Read our full review!

What to Pack for your Granada Hostel

Here’s some gear our editors take hostelling.

Travel Pillow

1. TRTL Travel Pillow: Get rid of the red eyes and yawning with this TRTL travel pillow. It’s not just a normal neck pillow (I mean, look at it!), the ergonomic design gives your neck and head so much comfortable support that you’ll actually be able to have some decent rest. Super easy to carry and clean, it takes up so little space compared to a traditional travel pillow.

Powerbank

2. Power Bank: Probably one of the most important travel accessories – a decent power bank. Charging your phone up to 5 times in a row, the Anker Power Bank is a true lifesaver on long adventures or bus rides. Slick looking, handy and not too big, it easily fits in even the smallest travel bag or your pocket. Charge 2 devices at the same time with the double USB port.

Active Roots Water Bottle

3. Active Roots Water Bottle: Sturdy and durable, the Active Roots water bottle survives the roughest adventures while keeping your drink cold or hot for at least 24 hours. Vacuum-sealed and made from stainless steel, the bottle can fit 25oz, which is plenty to keep you hydrated. Super cool bonus: the bottle isn’t just super useful, it helps to reduce the single-use plastic waste – save the planet by filling up your bottle.

Noise Cancelling Earbuds

4. Noise-Cancelling Earbuds: You’ll have some pretty sorry roommates – it happens from time to time. These noise-canceling earbuds help mitigate the damage. The comfortable and ergonomic design won’t hurt your ears while sleeping no matter how long you keep them in. Increase the quality of your sleep by listening to some relaxing music at night or just enjoy the silence.

Playing Cards

5. Playing Cards: Name your ideal night: I’m for a few cheap beers and some card games. Oh, and you don’t even have to be drinking to enjoy a game – having cards with you traveling definitely helps out on those long airplane or beach days! Make sure to snag a waterproof deck to protect from the pool, ocean or Chang.

best toiletry bag for one bag travel

6. Active Roots Toiletry Bag: Your toothpaste is lost in the depths of your backpack again? You won’t have this problem with the Active Roots Toiletry bag. The bag is made from a durable, water-resistant material, which can be a lifesaver on long travels. Super cool bonus: for every purchase, the company donates to an environmentally-friendly charity – it’s a win-win situation for everyone.

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.

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 HostelSee you down the road my friends…

De Boca En Boca best hostels in Granada, Nicaragua
De Boca En Boca is a no-brainer if your simply looking for the best hostel in Granada.

Travel Safety Tips for Granada

And don’t forget to sort your travel insurance before heading to Granada! We’ve put together a roundup of the best travel insurance for backpackers – check it out here, or if you’re low on time, get a quote from World Nomads, our favorite travel insurance provider.

Getting an estimate from World Nomads is simple – just click the button or image below, fill out the necessary info, and you’re on your way!

world nomads insurance banner

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!

Yay for transparency! Some of the links in this post are affiliate links. This means that if you book your accommodation through the site, The Broke Backpacker will earn a small commission at no extra cost to you. Your support helps keep the site going.