Casa La Merced (Calle Real Xalteva, tel. 505/2552-2744, www.casalamerced.com , $90–125) is a stately bed-and-breakfast with eight ample, street-level rooms around an open patio garden. It’s right across the street from the church of the same name.
Its stately blue facade gracing Calle La Calzada , Hotel Dario (tel. 505/2552-3400, www.hoteldario.com , $100) has open walkways, gardens, and 22 rooms which make artful use of the available space; request one of the 22 rooms with small balconies facing Mombacho .
One of Granada ’s first buildings (and one of few that withstood the fire that consumed the rest of the city in the days of William Walker) has been painstakingly restored as La Gran Francia Hotel y Restaurante (southeast corner of the park, tel. 505/2552-6000, www.lagranfrancia.com , $110–150 includes tax and breakfast). A careful blend of neoclassical and colonial elements in hardwoods, wrought iron, and porcelain characterize La Gran Francia’s every detail—down to the hand-painted sinks. Twenty-one rooms, some with balconies, are set around a courtyard and pool. The Duke’s Suite, named after an 18th-century mystery man, is one of the few accommodations in Granada with a whirlpool tub.
Another class act is Hotel Plaza Colón (tel. 505/552-8489, www.hotelplazacolon.com , $100–130), whose 26 large, elegant rooms feature air-conditioning, hot water, cable TV, and ceiling fan; six rooms have vast wooden porches looking straight across the central plaza to the main cathedral, a beautiful—but sometimes noisy—vista. The other rooms face a quiet street or the sculpted inner courtyards and pool. A restaurant, bar, and wine cellar are on the premises, and parking is available.