Pelican Eyes Hotel and Resort (tel. 505/2563-2110, www.pelicaneyesresort.com [1], $207–368) was one the first high-end resorts of its kind in Nicaragua, built on the hill above town offering fully equipped homes with kitchenettes and outdoor decks. Despite ongoing property disputes and management changes, the place trucks on. There are two bars, a world-class restaurant, and three infinity pools overlooking the ocean. Their Bistro La Canoa is one of the best places in town to enjoy a sunset; go for happy hour, otherwise a margarita can set you back $6.50. There’s also an on-site spa and sailboat to charter.
The cocktails are cheaper and the pool is just as nice at Villas de Palermo (tel. 505/8672-0859, www.villasdepalermo.com [2], $149), in the hills outside of town. Stay the night in a handsome villa or just drop in for the day to take a swim and have a drink at the poolside bar and restaurant.
Built in 1902 and recently restored and splashed across the New York Times travel section, the 
Hotel Victoriano (tel. 505/2568-2006, www.hotelvictoriano.com.ni [3], $140–180) has 21 rooms, giant four-poster beds, and all the amenities: little shampoo bottles, bathrobes, nice lobby, pool, air-conditioning, TV, hot water, private parking, and Wi-Fi. The hotel is located on the waterfront at the south end of town.
Links:
[1] http://www.pelicaneyesresort.com
[2] http://www.villasdepalermo.com
[3] http://www.hotelvictoriano.com.ni