Hospedaje Puerto Montt (Pedro Montt 180, tel. 065/252276, US$13 pp with shared bath) is friendly and central, but downstairs rooms are darkish with a maximum number of beds packed into each room. The breakfast is abundant.
Near the waterfront, Hotel Colina (Talca 81, tel./fax 065/253501, hotelcolina [at] surnet [dot] cl, US$28 s or d) is good value even if its location, and the quality of construction, aren’t the quietest.
Once one of Puerto Montt [1]’s better budget choices, well-located Residencial Urmeneta (Urmeneta 290, 2nd floor, tel. 065/253262, US$19/24–26/37 s/d) is showing its age. Rates vary according to shared or private bath, but include breakfast.
Hotel Gamboa (Pedro Montt 157, tel. 065/252741, US$15 pp–US$19/34 s/d) is a vintage hotel with sizable rooms that retain most of their original style, though some of the modern furniture is tacky. Rates vary according to shared or private bath.
Spruced up with an attention-grabbing paint job that suggests it’s rebounding from years of neglect, the deco-style Residencial Millantú (Illapel 146, tel./fax 065/263550, sperezs [at] telsur [dot] cl, US$23/34 s/d) offers tidy and reasonably spacious rooms with private baths and breakfast.
Decorated with the paintings of its gregarious Swiss-Chilean owner, Rossy Oelckers, rooms at Hospedaje Suizo (Independencia 231, tel. 065/252640, US$12–21 pp) vary in size and style, but all have shared bath; breakfast costs US$3 more. It’s straight uphill from the cruise ship port entrance on Avenida Angelmó.
In the summer peak season, the generally unremarkable Hotel Millahue (Copiapó 64, tel. 065/253829, fax 065/256317, www.hotelmillahue.cl [2], US$40/44 s/d) is often full.
Links:
[1] http://www.moon.com/destinations/chile/sur-chico/puerto-montt
[2] http://www.hotelmillahue.cl