For the two of us this hotel cost the same as a much recommended hostel in Matagalpa. It is in easy walking of one of the main town squares.
The hotel is clean and we really enjoyed the hot (and I do mean hot) water shower after mainly having cold and luke warm showers. You can get a good breakfast here for about $2.50. As we left we realized that the bus from Matagalpa to Managua stops right across the street from the hotel.