This hillside pueblo clings to the verdant lip of the spectacular Laguna de Apoyo [1] crater lake. The Mirador is a blustery cliffside walkway and restaurant complex at the edge of the crater with one of the best panoramic views in Nicaragua—look for the distant red-tiled roofs and cathedral spires of Granada [2], broad Lake Cocibolca behind, and on a clear day, the twin volcanic peaks of Ometepe [3].
Roaming marimba and guitar players will serenade you for a small fee (negotiate before they begin playing). Locals visit Catarina for its ornamental plant nurseries and the wares of local artisans and basket-makers whose shops begin at roadside. Vehicles pay $1 each to enter the Mirador.
Hotel Casa Catarina (tel. 505/2558-0034 or 505/2558-0227, reservaciones [at] hotelcasacatarina [dot] com, www.casacatarina.com [4], $75) is a new, modern, and well-liked three-star hotel. It’s the only choice other than the basic but clean Hotel Jaaris or Hospedaje Euro, both about $10 and one block west (i.e. downhill) from the Catarina church.
Links:
[1] http://www.moon.com/destinations/nicaragua/masaya/near-masaya/laguna-de-apoyo
[2] http://www.moon.com/destinations/nicaragua/granada
[3] http://www.moon.com/destinations/nicaragua/ometepe-and-rivas/la-isla-de-ometepe
[4] http://www.casacatarina.com