A large Garífuna town 10 kilometers west of Trujillo [1], Santa Fe is strung along a sandy road parallel to a fairly cluttered beach. Cleaner patches of sand can be found nearby to the east and west of Santa Fe. At the western end of town are two very elemental concrete hotels, Hotel Tres Orquídeas and, just across the way, Hotel Mar Atlántico, each charging US$7 s or d with a fan and private bathroom.
Comedor Caballero, better known as Pete’s Place, is worth making a trip to Santa Fe. The one-room restaurant, with the kitchen right next to the five tables, serves up superb conch stew, lobster tail, shrimp in wine sauce, snapper, pork chops, and other dishes daily for lunch or an early dinner (Pete’s closes at 6 p.m.). Meals cost US$4–12, and portions are generous. The chicken tacos and the seafood soup are particularly delicious.
The amiable owner, Pete, presides over the cooking with an eagle eye and is very knowledgeable about the Trujillo [1] area. Come with time to spare; the food is all cooked fresh to order and arrives very, very slowly—but is definitely worth the wait. The setting is simple, but Pete used to be a chef on a cruise ship, and the meals are certainly high-class.
There is a small patch of reef with decent snorkeling known as Cayo Blanco lying offshore in front of Santa Fe; it can be reached with the help of a local fisherman, around US$35 for the trip.
Beyond Santa Fe, the dirt road continues to the smaller villages of San Antonio and Guadalupe. Rooms can be found in San Antonio by asking around, and there is reportedly a small hotel in Guadalupe.
Thrice-daily buses ply the dirt road between San Antonio, Santa Fe, and Trujillo, leaving at irregular hours. The last bus normally returns to Trujillo around noon. It would also be easy to arrange a boat ride out this way for a nominal fee with the fishermen who pull up daily near the dock in Trujillo.
Links:
[1] http://www.moon.com/destinations/honduras/the-north-coast/trujillo