Guayama was founded in 1736, but the city was destroyed by fire in the early 1800s. It quickly recovered when the sugarcane industry grew by leaps and bounds, and the wealth that the surrounding plantations brought to town is evident in the number of striking neoclassical homes on the streets surrounding the main square. Some have been beautifully restored, whereas others are crumbling. One of the finest 19th-century homes,
Casa Cautiño, is now a museum.
The nearby countryside is home to Paso Fino horses. Each March at the Marcelino Blondet Stadium you can watch these high-stepping show horses strut their stuff during the Feria Dulce Sueño, a fair named after one of the island's most famous Thoroughbreds. Folk music and crafts are part of the festivities.