The Bearded Monkey
Lonely Planet review
A backpackers' favorite and Granada institution, the Monkey offers everything from 'suites' to mattresses on the floor. The house is a rambling colonial monster, partially renovated in the grunge chic-style that backpackers will be familiar with. The bar is always hopping and there's plenty of tourist info on hand.
Consistently busy, this cavernous hostel is a center of Granada's backpacker social scene. It offers a wide range of conveniences and has weary heads crashing down on pillows for many more days than originally planned. The hostel is set around a lush garden area, which also serves as a restaurant and bar and offers reasonable dorms (the private rooms aren't especially good value) and plenty of atmosphere. There are nightly films, as well as cheap international calls, free internet, laundry and a pool table (but no kitchen to use). If there's no space, you can crash in the courtyard on a hammock or mattress, but privacy will be at a minimum. The owners also run a budget hotel at Laguna de Apoyo, which you can visit on a daytrip (or longer) to enjoy a swim.