Mountain Area, very beautiful. We stayed in Hotelito El Economico C150 - Nice, clean, free wifi, TV in the living room and cool staff. Go to tourism Info Office situated in Museo del Cafe and ask what to do, you have so many options. On weekends everything is closed though. We been and enjoyed: Museo del Cafe (free), reserva natural cerro apante (C30), Hotel de Montañas e Cabañas Selva Negra (C50), Mirador Disparate de Potter; In the North of Matagalpa (we found it poorest) is located the Guanuca Cultural Center which is Movie Night on Fridays and Cultural Night on Saturdays (free entrance); You have this "Matagalpa Tours" store where you can find local crafts selling, spanish school, tours to the coffee plantation ($US15) where you know the producters culture, daily life and productive activities - pretty interesting! You also have the chance of homestays.