Moderately priced options, with shared bath and breakfast, include waterfront Hotel Playa (Pedro Montt 427, tel. 065/681278, US$7.50 pp), which also has a restaurant, and Residencial Esteban (Aguirre Cerda 353, tel. 065/681438, US$8 pp), on a quiet block and with a fine and economical downstairs restaurant.
New on the waterfront, Hotel Tierra del Fuego (Pedro Montt 445, tel. 065/681226, hoteltierradelfuego [at] telsur [dot] cl, US$13/23 s/d with shared bath, US$37 s or d with private bath) has an upstairs restaurant with a unique boat-shaped bar.
Hotel El Chico Leo (Pedro Montt 325, tel. 065/681567, elchicoleo [at] telsur [dot] cl, US$13/23–26/37 s/d) has a choice of rooms with shared or private bath, and a restaurant with good seafood and service. Other choices include Hotel Melimoyu (Pedro Montt 360, tel./fax 065/681310, US$19/28 s/d) and Hotel Los Suizos (Ladrilleros 399, tel. 065/681787, fax 065/680747, US$28/37 s/d).
In addition to hotel dining rooms, seafood restaurants dot the waterfront, with a handful of venues elsewhere. Among the choices are Hostería Romeo Alfa (Capitán Luis Alcázar 554, tel. 065/680177), which has respectable food but a slow kitchen and even slower service, and La Quila (La Paz 385, tel. 065/681206). Café Nuevo Amanecer (22 de Mayo 344, tel. 065/682026) serves snacks, sandwiches, and desserts; it also becomes a popular evening hangout.