There are many hotels on the beach in Las Penitas, here's our recommendations:

Hotel Oasis: On the beach, popluar with backpackers.

Playa Roca: American owned. Best sunset views and bodyboarding. Popular beachfront bar/restaurant with palapa. Dorms from USD7, private rooms from USD20. Tours available.

Suyapa: Ask for rooms at the top with an ocean facing balcony, excellent seafood in the restaurant.