Masaya is a city in Nicaragua
From the airport you can take a taxi cab that could charge you $20-30. Also, many cities in Nicaragua have buses that take you directly to Masaya such as Granada and Managua (cost ranges from 8-15 cordobas). There are also public minivans known as microbuses that will take you from Managua to Masaya for a bit less than $1.
Also, Masaya has several churches built in the colonial period and in the 19th century. Someof the churches are: Nuestra Senora de la Asuncion, San Jeronimo, San Juan, San Miguel, etc.
Masaya is famous for a really big mercado that has great smells and everything in abundance.
Masaya has a great handicrafts market for tourists. You can buy anything from bracelets, to pottery, to machetes/knives, artwork and good quality hammocks. The market is worth spending a couple hours at.
Hospedaje Central located just a few blocks from the Artisans Market and across from Fruti Fruti. Easier (2015) you find hotel Central next to Hotel Regis. It's a small hostel in a family's home. The rooms were $5 (130 cordobas) per person a night and had a very basic bathroom and shower in the bedroom as well as a TV and free wifi. The family was very friendly and helpful. They let us use their fridge and helped us try to arrange a night tour of the volcano. Locks are provided for the bedroom but not the outdoor gate to get out of the house so you have to call for a family member to unlock the exterior door every time you go in and out. Also they close the front door at 10p.m. A basic but great place to stay. Location at google map: 11.978002, -86.095998. Update April 2016: There are rooms starting at 8$ with shared bathroom. 10$ for double with bathroom. For single travellers there is no 5$ option.
Hotel Regis is the perfect place for a single traveller. Single with shared bathroom 5$ (140C$), double 10$, leaded by Doña Yolanda and her sister. They are happy to give you a lot of useful tips, they are so friendly that they will serve you coffee for free and if you stay there more than 2 days, they will make your laundry for free !!! (Incredible, right? :-)) Simple, but very nice place. Centrally located, about 4 blocks from Parque Central and consequently alao near to the Mercado Viejo (Artesania for tourists) and Mercado Muncipal (mixed market for locals)Nearly from everywhere in Masaya you can take a taxi for 15 to 20 Cordoba to the hotel. Free, fast Wifi which reaches all the rooms. Close at 10pm the front door.