This was a highlight of our 11 day trip to Nicaragua, FOR SURE. We stayed two nights at La Omaja in late March, and it was the perfect choice. However, it is not for everyone. Go here if you want something private, and off the beaten path (literally). On Ometepe island, they are still building the main road which will eventually make its way to the southern part of the island, the Maderas side, and will eventually reach San Ramon, where La Omaja is. Once this happens, the dynamic of the area will likely change. We loved how remote it was. We loved that the 45 minute car ride was incredibly bumpy. We loved that there was nothing really to do but admire the AMAZING views of both volcanoes, the beautiful lake, and the colourful gardens. We loved our host, Jamie, and his family. Not only did he pick us up in the port town Moyogalpa, but he cruised us around elsewhere on the island, set up transportation for us in the mainland, and engaged us in some of the best and thought-provoking conversations we had in Nicaragua. It was a pleasure to meet him and his family, and hope to visit the area again.
The rooms were big - open concept and large French doors that open to a large veranda. They were clean, but fairly basic. The AC worked, the fan worked, and the satellite TV worked. For me, the sleep quality was great. When I was traveling, I would typically wake up early (hard not to do with the sounds), but I loved it. I really enjoyed drinking coffee on the veranda while cutting into a mango and listening to the birds and other exotic sounds. All that while admiring a breathtaking view. I get annoyed by reviews that say "In the middle of nowhere" That is the point of this place. And you are still close to a lot of cool stuff - like the San Ramon waterfall (awesome), the Maderas hike (didn't do it), kayaking the rio istiam (awesome).
The only criticism is the food. It is exactly as Jamie described "Not bad". You are secluded at the hotel, and so you don't have other options for food. This isn't the worst thing in the world because there is plenty to choose from. But none of it was outstanding, and the prices were certainly more than the food warranted (compared to the rest of the country). But the bar is great, well stocked, and great ambiance. You have a running tab and settle up at the end (including activities). This was awesome because you don't need to carry cash while hanging out on a hammock.
The service was great... Everybody was very nice. They didn't speak English, but I would certainly not hold that against them. We couldn't speak Spanish. It kind of makes it more interesting.
In the end, we were happy to pay our bill. For two of us, two nights, roughly three meals a day, a load of beer, a kayak trip, pretty much car service around the island, and really good company, we paid $200 total.
My recommendation would be to stay at La Omaja for two nights, and Moyogalpa (Hospedaje Soma) for 1-2 days. If you want to climb one of the volcanoes, plan on longer.

Thanks to a chance meeting on the beach with the owner's mother, we spent four fantastic days at La Omaja in Merida, Ometepe. She'd said she found the heat at sea level stifling and couldn't wait to get back to her son's cabins - they were perched on the slopes of volcano Maderas, the breeze was constant and the view of the lake was spectacular. Sounded great, so I asked her to tell her son Jaime that we'd be there the next day. After three hours on a chicken bus, we jumped off the bus and weren't disappointed. Our cabin was simple, white-stuccoed with two double beds, rocking chairs and a fabulous balcony that looked out over the trees to the lake. To the right of the balcony - probably one of the best views of volcano Concepcion. In the evening cool winds rolled off Maderas and howler monkeys frollicked all night.

My friend braved the day's heat to hike to the waterfall, but I opted for a swim and lounged on the balcony. The next day she hired a guide - Randall - to climb Concepcion. Tough, tough climb - in surround-sound stereo, thanks to the howling monkeys. I embarked upon a four-hour kayak excusion up the river, which was a strenous and lovely paddle, especially if you like monkeys, birds, cayman and mangroves.

Our days at La Omaja started with breakfasts, for about $5 in its al fresco restaurant. And they were happy to prepare lunches-to-go, also for about $5. We enjoyed one dinner at La Omaja, and spread our "wealth" by enjoying the various other eating establishments in Merida. It was difficult to leave.

Spectacular views, great food, great host--what more could one want? Many improvements since our last visit, and beautiful landscaping. It is a place to just relax and read a book, or the best location for island activities, which host Jamie will arrange for you. If you wish, visiting with the numerous travelers from all over the world is an added plus. The bugless, open-air restaurant is perfect for lingering over coffee, while you take in the beautiful views, for visiting, or just lounging in a hammock In our opinion--this is the only place to stay!!.

My husband and I spent 2 nights here in July and loved it!

We were immediately enthralled with a beauty of La Omaja's setting. Perched on the side of the Maderas volcano, the property offers a view down the verdant hillside to Lake Nicaragua to the front and left, and to the right you can see the Concepcion volcano, its summit often partially shrouded in romantic mist or fluffy clouds. Lush tropical flowers attract hundreds of butterflies, brightly colored birds sing sweetly (and occasionally screech) as they fly overhead, and Jamie's horses graze sedately in the grass. At night, thousands of fireflies sparkle like glitter everywhere you look - I've never seen anything like it!

The deluxe cabanas are fairly simple but comfortable, with two double beds, a couple of wooden rocking chairs and table facing a TV (the hotel offers Direct tv, though as usual we never turned the tv on). The standard cabanas have 2-4 twin beds and no television. Both categories have fans and the deluxe cabanas also have a/c (the standards may as well, though I'm not sure). All cabanas feature a modern bathroom with a cool rock shower, with surprisingly good water pressure and plenty of hot water.

The owner, Jamie, is fantastic - very friendly and knowledgeable about Ometepe/Nicaragua. Overall, we loved our time on Ometepe. It's truly a magical place, and I highly recommend the island itself and especially La Omaja to anyone looking for a unique and wonderful experience a bit off the beaten path!

For a more detailed review and photos: http://travelprincessatl.blogspot.com/2010/11/nicaragua-part-4-ometepe.html