It's not air conditioned, and I slept comfortably with my mosquito net and the fan. I ate well and averaged about 13 dollars a day while there, well under my 20 a day budget, which helped make up for Costa Rica and Panama, where I spent about 40 a day for crap food and hotel. I burned mosquito coils and kept the room clean, and made good use of the big refrigerator in the room. It doesn't take much to make me happy.
Most hostels in there offer you a bed in a shared room with half a dozen people for about that price. In summary you get what you pay for, but what you pay for goes a lot further in Nicaragua!
If you're traveling with a bigger budget, by all means shoot for something nicer. But at least you know what you can do with 8 dollars in San Juan del Sur. If you go there tell them the tall Gringo "Daniel" sent you.
jaja, vale, mi amigo!
meep