My husband and I stayed at Hotel Casa Barcelona for 6 nights in November 2012. When looking online before we booked we were a little hesitant about the 10 minute walk and whether it was safe at night, but we walked back from the central tourist area every night between 9 and 11pm and never felt at all unsafe.
As others have mentioned, the very best part about the hotel is Yexira (the owner) and Josepha - oh, and their dogs, Shakira and Apolo! They are extremely welcoming, fantastic cooks and speak excellent English. Since it was our first time in Nicaragua, we had lots of questions about everyday life and they were very happy to answer them all.
The walk to the tourist center of Granada takes 10 minutes through the market (or you can cut around the side to find quieter streets). We actually found this to be an interesting part of our day considering that the tourist area of Granada really is quite touristy. Our Spanish is pretty rudimentary, but if you were able to converse in Spanish it would probably make the walk even more interesting.
On a typical day we would walk into town in the morning, spend the day looking around/doing a tour, then return to Casa Barcelona in the afternoon, have a rest and take a shower and then head back out for dinner. I think taxis are fairly cheap (maybe 50 cents), but we never took one and just walked back and forth. Several of the tour operator who take you to Volcan Mombacho will stop by the hotel to pick you up, and probably for some of the other tours too.
Hotel Casa Barcelona was the first place we stayed in Nicaragua so we had nothing to compare it to at the time, but we stayed at a couple of different hotels in Leon and on the coast later in our trip where the rooms were the same price, but nowhere near as nice. Our room was new and nicely decorated with plenty of space to unpack our clothes. The communal areas are also very nice with "hammock chairs" to relax in.
They organized a pick up from the airport for us, and we didn't have any problems, they were there waiting for us with a sign that we saw before we exited into the main terminal.
Lastly, the food they prepared was really great. We only ate breakfast there, but it was delicious, and on our last day they made us a Nicaraguan specialty which was similar to rice pudding as well as introducing us to other Nicaraguan dishes during our stay.
We would definitely stay here again if we were visiting Granada, and the staff really are exceptional.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.