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Granada, or the "Gran Sultana", is one of Latin America's most beautiful cities, and is listed as a World Heritage Site by UNESCO. Founded in 1524 on the shores of vast Lake Nicaragua, this ancient town is full of history and Spanish colonial charm, and is famed as one of the oldest European settlements in the western hemisphere. Amongst the narrow streets and glorious architecture, you'll find some excellent hotels, fine restaurants and plenty of interesting sites and museums to fill your days.
The city also makes a great base for exploring the surrounding area, with volcanos, beaches, national parks and the incredible waterworld of Las Isletas de Granada all within easy reach.