One of the best kept secrets in Honduras is the colonial city of Gracias. Capital of the department of Lempira, in Western Honduras, Gracias is accessible from Copan via the Western Highway towards Santa Rosa de Copan. Just before getting to Santa Rosa there is a highway leading south, that will take you directly to Gracias in less than an hour, if you are traveling by car. This City was founded in 1536, by Capt. Juan de Chavez and the original name was Gracias a Dios. Apparently the Spanish conquistador had spent several days in this very mountainous area looking for a place to establish a city, and when he finally found an area flat enough to build such city, his first words where "gracias a Dios que hemos hallado tierra llana" (thank God that we have finally found flat land). Gracias still retains much of its original atmosphere. The Real Audiencia de Los Confines then the governing council for the protection of indigenous human rights of Central America and capital of Honduras, was established here the 16th of April, 1544. The city had some years of booming growth before being overshadowed by the cities of Antigua Guatemala and Comayagua.

The department of Lempira takes its name from one of the first Honduran heroes, Lempira, who gave heroic resistance to the Spanish conquerors in the early 1500’s. The National hero is remembered each July 12-20 in the city of Gracias, when traditional dances, parades and civic activities are observed. A fair is set up in the central park, where you can purchase food and local products. If you plan on visiting Gracias during these dates, make sure to make a hotel reservation in advance.

Three colonial churches stand within the center of the city, San Sebastian, Las Mercedes and San Marcos, with a fourth one, Santa Lucia close by in a neighboring village. The most interesting of these temples is the Church of “Las Mercedes”, and the Real Audiencia de Los Confines, that today houses the parochial center. The landscape around Gracias is extremely mountainous, with heavily forested areas surrounding the city. Located at the foot of the Montaña de Celaque, highest peak in Honduras at 2,849m above sea level, and home to the Celaque National Park, this area boasts one of the largest tracts of cloud forest left in Central America, and is one of Honduras's most pristine parks. Celaque means “box of water” in the Lenca dialect. There are 11 rivers and many creeks that are born in the mountain providing drinking water to all the surrounding villages includingGracias and El Salvador. Trails are clearly marked in the park, and there are three different areas with facilities for campers: the visitor’s center, located at 1,400 m above sea level has two small cabins, cooking facilities, water and toilets. The second area is a campground located at 2,000 m above sea level, a good 3 ½ hour hike from the visitor center and is called Don Tomas. Finally the last one is another 1 ½ hour hike from Don Tomas and is called El Naranjo. These last two areas have water and latrines. In addition, there are two different cabins for rent just below the forest line, on the road to the visitor’s center. The largest and most complete of the two are Cabanas Mondragon, the other is managed by the Guancascos restaurant, both are included in the hotel table of Gracias, featured in this guide.

In the neighborhood of Gracias are several small communities with some of the largest concentration of Native Indian population in Honduras. Of these the most significant in the area are the Lencas. There is a good production of handicrafts in the region, the most outstanding being ceramics manufactured by the Lencas. The best place to obtain additional information about Gracias and surroundings is the Guancascos Hotel & Restaurant located on a hillside next to the San Cristobal Fort, approximately 5 blocks from central park in Gracias. Ask for Froni, she is a Dutch turned Honduran and is fluent in several languages.