What a great find in this budget hostel! Easy to find off one of the main streets, look for the sign painted on a light pole. Free Internet access, book exchange and DVD rentals on 2 TVs are great perks. The reason it is a true oasis is the swimming pool, small but perfect to beat the hot Nicaraguan sun. Dorm beds are cheap, single rooms reasonable and shared rooms are like a regular hotel room with private bath. The common showers are clean and offer privacy. Cushioned chairs under murals and hammocks line the courtyard offering relaxing hang-out spots.
Reception workers are friendly and request well deserved tips. Beverages are available on the honor system and the tab is paid at check out. Simple breakfasts are available poolside and won't break the bank.
The other hostel in town gets tons of hype, some well deserved. I suggest going there to eat but stay at Hostel Oasis.