Esteli

Hospedaje Luna
from the back of the cathedral, it's only 1 block north on the left hand side

Gringo central with clean dorms and a few single rooms: clean, fresh, attractive and fun, with central garden, hammock and seating area, cable TV lounge and movies for all, with the cheapest rates for backpackers, couples and group, the dorms are $8 per person, good place to meet other travellers, and get information in English and Spanish. Has hot water, laundry facilities, free organic coffee and teas, bike hire, cigar factory tours, live music nights out tours, and more. Make reservations or be sure to be abundantly clear with your intended length of stay as they will not hestitate to give your bed away from under you if a larger group should require it. NO lockers in the dorms.

Hotel Nicarao
on the east side of the main street a couple blocks south of the Parque Central

Beautiful, clean hotel with simpatico staff, rooms are arranged around a central garden with tropical birds and a friendly duck. Double with private bath and TV: US$17.50, single with shared bath, and no TV: C$233/US$10.