The most popular digs in Gracias are at Hotel Guancascos (tel. 504/656-1219, www.guancascos.com, US$25 s, US$32 d), three blocks west and one block south of the parque central, offering 17 rooms tastefully built in a rustic style, with hot water, cable TV, fan, and a large window. Banana trees and other plants grow around the grounds. Rooms 7, 8, and 9, under the restaurant, have beautiful views. The restaurant is a good place to meet other travelers in Gracias and to gather tourist information, and it has a computer with free Internet access for hotel guests to use. Guancascos also rents sleeping bags (US$2) and tents (US$5–10), and can arrange outings on horseback.

A fantastic addition to Gracias’s hotel scene is
Finca El Capitán (tel. 504/656-1659, www.hotelfincaelcapitan.galeon.com, hotelfincaelcapitan [at] yahoo [dot] com, US$16 s, US$32 d, a few dollars more for a/c), facing the Santa Lucía church on the outskirts of town (on the road that leads to Celaque). The 20 rooms are spaced through 12 cabins painted in rose, peach, and teal, encircling a large common area with grass and banana trees, a swimming pool, and children’s play area. Beds have colonial-style dark-wood headboards, and the cabin porches have hammocks and rocking chairs in which to while away an afternoon. There is a full-service restaurant (breakfast US$2–3, dinner US$4–5), decorated with hollow gourds and animal hides.

The swankiest place in town is Posada de Don Juan (tel. 504/656-1020, www.posadadedonjuanhotel.com), with luxury linens and flat-screen TVs, as well as a restaurant, swimming pool, parking, and wireless Internet access. The best rooms are around the pool; the others encircle the parking lot motel-style, jarring with the otherwise decidedly-upscale ambience. Singles are US$24–52 and doubles US$34–58, depending on if the room has a fan or air-conditioning, and whether the beds are full-size or queens. There are also rooms available with three double beds (US$46–79).

The much simpler Aparthotel Patricia (tel. 504/656-1281, US$32 s/d) is another acceptable option, with five spacious rooms with tiled bathrooms and cable TV. The hotel has one very large apartment for US$53, with two bedrooms and a full kitchen. The furnishings are nothing special, but if space is what you need, Patricia’s got it.

By the Presidente thermal baths is Villas del Agua Caliente (tel. 504/656-1172, villasdelaguacalientehotel [at] hotmail [dot] com, US$32 s/d), with 16 rooms in three cabins, plus a restaurant. The cabins have ochre stucco walls and exposed beams, as well as a fan and TV; some rooms can accommodate up to six. The pools are fun to visit at night, and after a few hours in the pools, with a couple of beers, having a bed nearby is not such a bad idea.

Outside of town is the group-friendly Villa de Ada (tel. 504/656-0763, www.villadeada.com, US$25 s, US$27 d), with square cabins set near lagoons. There are swimming pools for adults and children, and it’s possible to take a boat ride or fish in the lagoon (the restaurant is known for its fried tilapia).