Estelí: Discovering Nicaragua’s Underrated Highland City

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Arriving in the Nicaraguan town of Estelí during rush hour felt like an act of bravery, not only because I was a new motorbike rider still gaining confidence in chaotic Central American traffic, but because days earlier I had been in a very different setting.

Having crossed the border from Honduras to begin my Nicaraguan adventure at the beautiful and peaceful Somoto Canyon, Estelí was just my second destination, and truthfully, I did not know what to expect. 

Riding past the many tobacco plantations confirmed what I had been told about Esteli – it had made a name for itself in the cigar world. Although I was no cigar connoisseur, I knew that I wanted to explore one of the many cigar factories while in town and learn more about this custom.

What I didn’t expect was that I would enjoy this organised chaos so much that it would appear a second time on my itinerary as I journeyed back north a few months later. 

Estelí, with its raw Nicaraguan culture, local cuisine and striking architecture, was a nice surprise for me, and while I did meet a few tourists in my hostel, I could tell this was a destination that often goes unnoticed.

Cigar culture, delicious food and welcoming locals defined my visit both times, and who knew that Esteli would stand out as a memorable stop off, since just a few days before arriving, I barely knew anything about it. 

Exactly how to get here

Esteli is conveniently located along the famous Pan American highway, but that doesn’t mean that overlanders or travellers always include it in their itinerary. Because some travellers opt to cross from El Salvador to Nicaragua and then venture south to the more well-known places like Leon, Granada or Ometepe, Esteli sometimes gets overlooked, but I guess that’s what makes it so special.

I rode my motorbike to Honduras, since it was a lot more affordable than taking the ferry from El Salvador and continued onward to Somoto Canyon, which meant that Esteli was naturally my next stop. 

However, if you are already in Nicaragua and fancy checking it out, Esteli is about a 3-hour drive north from Managua, just over 2.5 hours from Leon and just under two hours from the border with Honduras (El Espino border crossing). 

You certainly don’t need to have your own set of wheels to get there, since most places around Nicaragua are well connected by bus.

Esteli can easily be reached from the major cities, and if you have plans to visit Somoto Canyon (which I would highly recommend), then you will pass by Esteli as you venture north to the canyon. In saying that, if you take a tour to the canyon, chances are the tour will not stop in Esteli en route. 

Esteli is not the kind of place you will find advertised on its own as a day trip, but it is a great place to base yourself to enjoy the surrounding attractions, which I will dive into further along. Luckily, getting there is easy and cheap (between $5-$10 one way), and accommodation is aplenty. So it is well worth adding to any Nicaraguan itinerary, if time allows.

Where to stay in Esteli

Travelling with a dog and a motorbike often means limited options, which in some ways saves me time sifting through endless accommodation listings and reading reviews.

Luckily, in Esteli, this meant that I ended up choosing a great hostel in the centre of town. I stayed at Luna International Hostel on both occasions, while travelling south through Central America and again on my way back north towards Mexico. 

Despite not being prominent on the Nicaraguan tourist trail, Esteli has more accommodation options than you may assume, and I will list a few great options for all budgets below. 

Hostel NO STRESS TRAVELLERS

It is worth noting that Esteli is not that big, but being central is always my go-to for easy access to the cute cafes, local markets, and parks, because I would not rely on my motorbike each time – plus it’s easier to walk my dog in the local parks.

  • $ Luna International Hostel is where I based myself both times – a clean, sociable spot a block or two from Esteli’s central park, with mixed dorms, a couple of private rooms and a rustic garden rancho to flop in.
  • $ Hostel NO STRESS TRAVELLERS – a cosy, garden-set hostel where the owners treat you like family.
  • $$ Hospedaje Coffee & Cocktails has just 6 rooms, a short walk from the centre, with a small courtyard and a laid-back bar. Good value if you want somewhere quiet but social.
  • $$ Hotel Casa Vinculos – a mid-range hotel near the centre, with an on-site restaurant and bar. It’s highly rated for couples and families.
  • $$$ Hotel Los Arcos sits a block from the cathedral with large, clean rooms around a courtyard and a rooftop terrace with mountain views.
  • $$$ Paysage Cache (for a hillside and a stream) – a 3-room countryside lodge 7km from town run by a Canadian-Nicaraguan couple, with exceptional food cooked by the host and some of the best reviews of any property in the region.
Hotel Los Arcos‘ signature arched courtyard and plunge pool
Warm local hospitality at Hotel Los Arcos

The tobacco culture in Esteli

Once you notice the many shops and factories, you’ll soon see why Esteli is known as the cigar capital of Nicaragua. Learning about the tradition of tobacco cultivation was a huge highlight for me, even as someone who has never smoked.

In saying that, if you are a cigar enthusiast, you will have access to some of the finest cigars on the planet. I loved diving into this quintessential part of Esteli’s life. After all, many locals work in the factories and rely on these jobs to survive, so it was interesting to get a glimpse into this world.

Esteli has many cigar factories to choose from, including Rojas Cigar Factory, Plasencia Cigar Factory and Joya de Nicaragua Cigar Factory, to name but a few, as well as a huge variety of cigar shops too. Honestly, you won’t even need to use a map to find them. If you are exploring the town, you will stumble upon countless cigar shops, but some of the factories are located on the outskirts of town.

As you enter and leave Esteli, you’ll notice the array of tobacco plantations, which have put this town on the map regarding cigar production. Drew Estate Tobacco Company is one of the more renowned companies and is located just outside the town.

Inside Esteli’s cigar factories

Most tours in Esteli take you inside working factories, where the focus is the production floor, not the shop counter. You don’t need any interest in cigars to appreciate it. Honestly, this was one of the best experiences I had in Central America, and perhaps because I ended up on a tour without any plan.

I had read on iOverlander (an overlanding app I relied on during my trip) that many of these factories offer guided tours, and while riding from place to place, I stumbled upon one that seemed far from touristy. Feeling like I had walked into someone’s workplace – which I had, I was instantly taken on a tour of the Perdomo Cigars factory

Perdomo Cigars factory, one of Esteli’s cigar factories

The guide walked me through every corner of the factory, and I watched the cigar-making process in full swing, using local tobacco and traditional techniques. Everything was explained to me as I followed from point to point, and I felt less like a visitor and more like a manager doing a surprise inspection.

I was also shown the cigar storage room, which was temperature-controlled, packed to the brim with cigars of all kinds and extremely well organised.

The attention to detail was incredible, and the tour was completely free of charge, which took me off guard. If you only have a short time in Esteli, this is an unmissable experience

Note: You don’t need to know about cigars or tobacco in general to tour a factory. I went with zero knowledge or expectations and found it deeply culturally rewarding. 

Other local experiences in Esteli

In my opinion, Esteli is a great town for exploring the surrounding areas, since there are so many great natural wonders a short drive away. The added bonus is that you have access to many local eateries, affordable accommodation and authentic Nicaraguan culture, which can be hard to find in the busier, more popular cities and towns.

Below, I will outline some of the best things to see and do in Esteli itself, before sharing day trips you can do in the area.

1. Visit the cathedral

Cathedrals are often standout features in many parts of the world, especially in Latin America, and Esteli is no exception.

The local Cathedral is at the heart of the town, and you cannot miss it. It is essentially a local meeting point, where you can experience the locals going about their day and enjoying social gatherings. 

You can go inside to check out the architecture, but I found the outside to be far more impressive and well worth a photo opportunity – especially at night.

2. Try the local cuisine

Esteli has a great mix of options, and there is a lot of opportunity to try local food like the town’s beloved dish, which is Indian chicken soup with meatballs.

While I didn’t try this, I did see a lot of locals ordering it, and I found Castillo’s Buffet in the centre of town a great option for trying affordable local dishes. 

I would also suggest keeping an eye out for baleadas, which can be compared to quesadillas and make a great in-between-meals snack as well as a typical Nica breakfast, which consists of gallo pinto (a bean/rice mix which you will see everywhere), plantain, and eggs. 

A classic Nicaraguan fritanga plate – grilled meat, gallo pinto, fried cheese, and tajadas

If you are a cheese lover like me, you have to try the local artisan cheeses, which are famously made by the La Garnacha community in the nearby reserves. You will also find artisan yoghurts and jams made there, which is a true local tradition. 

3. Explore the murals

One of Esteli’s most striking features is its street art, which you won’t know until you wander around and seek it out.

Many of the murals are scattered around town and reflect the country’s revolutionary history; in fact, if you are really into street art, you can often find mural tours around town. Otherwise, make your way to the Casa de Cultura, where you will spot one of the oldest murals in the town. 

(mathes/DepositPhotos)

If you take your time to wander around the city, especially along the main avenues, you will also spot some murals. If you are travelling along the Pan American Highway, watch out for Esteli’s largest mural, which is located between the two bus stations.  

4. Check out the local cafes

Being so close to the Nicaraguan highlands, which are the prime coffee region in Nicaragua, Esteli has a great selection of cafes to check out.

Of course, while wandering around and seeking out the best spots to sit and enjoy a brew, you may come across cafes that also double as cigar shops, which is quite common in this town.

There are so many places to choose from in Esteli, but some of the best include Coffee Lovers Esteli and Bourbon Cafe, both of which are in the town centre.

One of my favourites was The Coffee Hub, just around the corner from my hostel, since they had excellent coffee, delicious cakes (I recommend the cheesecake), and fast wifi – which, as a digital nomad, is always a great combination. 

Day trips from Esteli worth the effort

1. Visit Somoto Canyon

Somoto Canyon is less than two hours from Esteli and, in my opinion, is an unmissable experience – much like the cigar tour.

I visited the canyon before I arrived in Esteli and had the most incredible experience doing a guided tour from Casa Ricardo. Not only did we spend the entire day adventuring through the water and jumping off mini waterfalls, but my dog was welcome too. Luckily, he is a water-loving Labrador, so he was up for the challenge – it, however, took some convincing. 

Somoto Canyon is striking to look at, but I would highly suggest going on a wet and wild canyoneering tour if you have time.

As someone who is not entirely comfortable in deep water, I found this to be a lot of fun, and the panic was kept to a minimum – except when my dog and I had to be hoisted down the waterfall because we were too afraid to jump. During December, there was a lot of water to be enjoyed, but my guide showed me just how high the water can get in the rainy season, and it was astonishing. 

You could take a tour from Esteli or opt to take local transport and do a tour when you are there with a guide from Casa Ricardo or elsewhere.

I have heard of many travellers who do the self-guided hike, but this is a surefire way of getting lost and not getting to experience the canyon in its entirety. The $25 tour is well worth it! 

2. Miraflor cloud forest

One place I certainly want to visit when I return to Esteli one day is the Miraflor Cloud Forest, which I had heard so much about, but sadly didn’t have time to include in my itinerary. If you are travelling around Central America, this won’t be the first or the last cloud forest you will encounter, but it is well worth exploring if you have extra time while in Esteli. 

Less than 90 minutes from the town, you will find the Miraflor Natural Reserve, home to cloud forests, hiking trails and waterfalls, so if a date with nature is calling, then I suspect this would be the perfect place to discover.

In saying that, if you are short on time but still fancy visiting somewhere encompassing beautiful nature and peaceful surroundings, then Esteli waterfall (or Salto de La Estanzuela), located just 20 minutes away, is a great choice. 

3. Take a day trip to Jinotega or Matagalpa

The northeastern corner of Nicaragua is possibly the least discovered part of the country, but there are so many intriguing destinations within a short distance from each other. 

Basing yourself in Esteli not only means you can venture north to Somoto Canyon, but you can also venture further east to the towns of Jinotega or Matagalpa – or both if time allows. 

Jinotega is at the heart of Nicaragua’s coffee country, surrounded by mysterious, misty mountains and dotted with coffee plantations, while Matagalpa is similar but a bit more developed and a little less sleepy. 

The fact that they are opposites makes them both worth a visit. Think bean-to-cup coffee tours, scenic viewpoints and vibrant hangouts – a perfect recipe for a day trip into the Nicaraguan highlands. 

4. Check out the nearby petroglyphs

If you have checked out some of Esteli’s murals, you might notice a few which were inspired by the petroglyphs (this is where a mural tour guide comes in handy). These petroglyphs are just over an hour from Esteli, in the town of San Juan de Limay, and are well worth seeing in real life if you love history, culture and traditional art. 

You’ll spot various carvings throughout the area, but it is also known for its stunning scenery, so make sure to wear some good walking shoes if you decide to embark on a short hike while you are there. 

Best time to visit Esteli

November – April is the dry season in this part of the world, and as a motorbike rider, I figured this was the best time to enjoy the ride. I visited Esteli in the lead-up to Christmas and got to experience the town lit up with festive decorations, which was extra beautiful.

This is also the perfect time for outdoor activities, such as visiting Somoto Canyon or doing an outdoor coffee tour, so I would certainly recommend visiting during this time.

December and March are the peak of the dry season, so you will likely experience more crowds than in the shoulder season, but this is nothing like the crowds elsewhere in Nicaragua. 

From my experience, visiting Esteli while the Christmas lights are still up is quite a treat for the eyes, and you will see the parks and town squares come alive with holiday spirit. During this time, there are parades and various celebrations, which were fun to experience, even if I was not entirely sure what was being celebrated. I loved the social aspect here, and people were very welcoming.

Good to know before you go

  • For a real deep dive into the local culture, visit the La Garnacha community, which is part of the Tisey Estanzuela reserve. They produce their own artisan dairy products, so it’s best to arrive with an empty stomach and take a tour while you are there. 
  • You can swim in the Esteli Waterfall, but it does get quite muddy and murky during the wet season. Don’t let that put you off. 
  • Matagalpa has a coffee museum, which is well worth visiting if you want to learn about the process from bean to cup. I did quite a few coffee tours in Central America and loved learning about the local traditions. 
  • Esteli attracts backpackers, cyclists and motorbike travellers like myself, keen to travel slowly and enjoy the local spots, so you will notice prices are low and the atmosphere is quite relaxed (when it’s not rush hour on Avenida Central).
  • Esteli is incredibly authentic, so be flexible to eat local food, not meet many tourists and enjoy a genuine connection with the locals. 
  • I must admit that when a gringo craving hit, my guilty pleasure was a large pizza from Little Caesars, which cost just $5. There is a Little Caesars in Esteli (conveniently close to Luna International Hostel), just in case you are craving a familiar slice too.  

Where to next?

If, like me, Esteli is one of your first stops in Nicaragua, it quickly sets the tone for what travelling in Nicaragua can feel like.

From here it is easy to start looking ahead at other destinations like Leon, Granada and of course Ometepe.

Like Esteli, which is relatively off the radar for most travellers, each of these Nicaraguan destinations offers something completely different, and that is the beauty of travelling in this part of the world. 

It is worth checking out my other guides to see how they could fit into your broader travel route. And if you really want to explore another side of Nicaragua, why not consider The Corn Islands – a Caribbean escape that feels a world away from coffee plantations or cigar factories.  

A woman (jade) smiling while sitting on a black Suzuki parked on a paved roadside on Ometepe Island with Concepcion Volcano in the background
Off we go! Check out my journey to Ometepe.

 

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