Hotel Aitué (Antonio Varas 1048, tel. 045/212512, www.hotelaitue.cl [1], US$50/59 s/d) is a business-oriented facility with responsive service.
At the foot of Cerro Ñielol [2], Hotel Terraverde (Prat 0220, tel. 045/239999, www.panamericanahoteles.cl [3], US$74/85 s/d) is a five-star choice by local standards.
Hotel Frontera (Bulnes 733, tel. 045/200400, www.hotelfrontera.cl [4], US$70/85–85/95 s/d) is a complex of two facing buildings that comprise one business-oriented hotel and convention center. The one across the street has greater amenities—swimming pool, gym, and the like—but its only advantage is easier access, as guests at either building are entitled to use all facilities.
Links:
[1] http://www.hotelaitue.cl
[2] http://www.moon.com/destinations/chile/sur-chico/temuco/sights/monumento-natural-cerro-nielol
[3] http://www.panamericanahoteles.cl
[4] http://www.hotelfrontera.cl