Las Penitas is a sleepy fishing village with a few hotels and a few restaurants about 20 minutes and $10 US by taxi. It is quiet and charming. Hotel Suyapa Beach is the best accommodation and has the best restaurant. The staff were very helpful and very attentive. The lobby and rooms were very clean. There is a small pool, however you have the entire ocean! The restaurant is excellent -- 5 lobster tails for $10 US - can't beat it. Also sea bass, chicken and pasta dishes were excellent Cand the seafood soup is delicious! Continental breakfast was included, however you can order from the menu for $2-$3 extra. There's a small gift shop with mostly beach wear, bottled water and ice cream. We were there during the Xmas holidays and the restaurant was crowded at lunch time. I heard from other guests who have stayed before that it's typically very quiet during the week but that people from Leon arrived on the weekends. Either way, it was not overly crowded and could always get a table.
Be aware there is no bank and no ATM at Las Penitas. Hotel Suyapa Beach restaurant and one other (Barco de Oro) take credit cards -- others are cash only. All in all, we would stay there again.

NOTE: I only have been to the restaurant, never stayed over night

Absolutely great food and I have been there at least 10 times...But a word of caution...they host many tours, thus if you are there when there is a large group...service will be lacking...Have had great slice but not as consistent as the food...Great fish and shrimp dishes and very large portions .

Directly on the beach.....careful at high tide....outstanding sunsets"..easy drive from
Leon.

My family and I have been visiting Hotel Suyapa beach a few times since we have been living and working in Nicaragua the past two years. The hotel lies right on the beach and has a restaurant with really good food, and a great view. Too bad that the people who works in the restaurant aren`t too service minded!

The rooms are not the greatest, but you probably won`t stay too much in the room anyway.

The hotell has a small pool, wich doesn`t look very clean, but our kids had a good time there anyway. The waves on the beach are very big, and probably left best for the adults.

Stayed 3 nights July 2011, Clean room (family room) 1 double 2 singles+ AC $50 included breakfast, We found the staff very friendly and the seafood fresh and fantastic but beware the portions are huge,I ordered Lobster and got 4 medium lobster +2 extra tails. the kids loved the total freedom the beach and pool, the views and sunsets are great but things do close a little early but the kids were ready for bed at 8 perfect..Would we go again YES !!!!.. just try to remember it is Nicaragua Tranquilo...