The choice of hotels is very limited in town, and my advice is try stay in the surrounding countryside to take full advantage of the beautiful nature the area has to offer. Many budget hotels have no hot water, so check beforehand if you dislike cold morning dips. Matagalpa's only hostel, La Buena Onda, is a modern, two-story building with courtyard located 1 block north and 2 blocks east of Parque Morazon (tel. 505/2772-2135; www.hostelmatagalpa.com). Dorm beds start at $7 and private rooms at $30.
Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.