Granada is one of my favorite destinations in Central America. It is a medium sized colonial town, so there are plenty of services and activities, but it definitely doesn’t feel like a city. There are great historical attractions throughout the town, including colonial architecture. Granada is a town focused on tourism, since it is located on Lake Nicaragua, and is just about an hour from the capital city of Managua. Lots of Nicaraguan tourists visit Granada.
There are volcanic isletas or small islands that are scattered around in Lake Nicaragua. By taking a tourist boat from the dock on the East side of Managua, you can visit restaurants, hotels and uninhabited islands, or swim in the Lake.
There is a lot of history and culture in Granada (birthplace of Ruben Dario). One activity I recommend is Spanish School at Casa Xalteva. They can also arrange homestays with families. Granada is a great place to spend a night (or many nights) because it has a great combination of outdoor activities (boating, lakes, volcanos to hike), and indoor activities (viewing historical architecture, or watching cigars being made). There is also a great night life on Calle La Calzada in the evening, to finish off a perfect night in Central America.