The colonial city of Granada was founded in 1524 by Francisco Hernández de Córdoba, just like the city of León. Granada, however, is still located on its original location contrary to the city of León. As a result of its strategic position on the shore of Lake Nicaragua (or Cocibolca) the city was seen as a great place for trade and commerce, and Granada even enjoyed significant political power when it alternated as capital city with León in the first years of the post-colonial Nicaragua. On the other hand, the same qualities made Granada an attractive target for English pirate invasions, entering from the San Juan River. The city was plundered repeatedly during the civil wars and in the year 1856 it was burned down by the U.S. filibuster William Walker.

For this fascinating historical background Granada turned out to be the best location for the poetry festival, offering not only inspiring architecture but also a setting that allows the event to take place inside the colonial buildings as well as outside on the spacious streets, plazas, churches, study centers, and markets – all attractive places where poets, spectator, listeners, inhabitants, and tourists can gather.