I found this hotel on this website (TripAdvisor) and decided to stay there based on two things: one, it looked like a little resort (with the pool, restaurant in the center) which is not typical of the other places around that area in Managua, and two, they accept dogs.

We paid $95 for one night, a room with a queen bed and a twin bed, private bathroom. The room itself was typical Nicaragua. Nothing to write home about, but clean. It was not the room they were going to give us, however. They were taking us up to the 2nd floor, and we asked if we could have a first-floor room because of the dog and our enormous amounts of luggage. So we never saw the first room, which was probably nicer, it was in a newer section of the hotel.

They have a cute courtyard area with a pool, some palm trees and tables situated around the pool. And they have a decent open-air restaurant. The food there was a little better than your typical Nicaraguan fare. I had chicken cordon bleu and it was very good - priced right at $6.50 for the entree. My husband had traditional Nicaraguan Jalapeno Chicken and he said it was mediocre. My two boys split a hamburger and fries, and it was a good portion size and delicious!

The staff here was very friendly and accommodating. They allowed our dog to hang out poolside and never said a word. He was on a leash at all times. It was very quiet at this hotel when we were there (on a Wednesday night). I think we may have been the only people staying there at that time.

I would recommend Hotel Europeo to those wanting a little escape from typical Managua, bare bones hotels. If you are just going to be sleeping there, save your money and go to Los Balcones. But if you want to hang by a pool and enjoy some good food w/o driving anywhere, this is a GREAT PLACE!