Another super clean hostel in Nicaragua is Hotel Castillo. From the dock where the ferry arrives, a truck will take you to the hostile for $1 per person. At the hostel, they have there own restaurant with a reasonably big selection. The menu is in Spanish, but they have English-speaking employees to help you out. Most items are under $4, and they have good breakfast selections. The dormitories have 1 to 3 beds, are clean and come with a window. They also have private rooms with a private bath for $7. It is better for your budget to get a dorm and use the public bathroom; it’s not any better than a private one. You will want to bring your own pillow or ask for another because the pillows they provide are very worn out and pretty much none existent.

Like most places in Nicaragua, they work on the honor system-you don't pay until you leave. Everything you order goes on a ticket and is added up at the end of your stay, but keep in mind that they add tax in as well. The hostel is very quite and cozy, especially in the evenings. The market is just a block a way, along with the bus station. Buses leave about every 2 hours for the other side of the island. You will definitely want to travel to the other side of the island to see Volcan Merida and the San Ramon Waterfall.

I spent one night here, only because I had plans to go to the other side of the island the next day. Had I not gone to Merida, I would have definitely spent more time here.

Castillo is a great place to stay, but there is not much to do in Altagracia, so you will probably only spend a night or two there like I did. There are only three places to stay in Altagracia, and this is definitely the best bang for your buck.