The quantity of accommodations in {node:24423 link Chile Chico] is increasing and their quality is improving, but there are no luxury lodgings. Half a block south of the plaza, Hospedaje Don Luis (Balmaceda 175, tel. 067/411384, US$7.50–18 pp with breakfast) is one of the best values. Traditional budget choice Hospedaje Brisas del Lago (Manuel Rodríguez 443, tel. 067/411204, US$12 pp) has added cabañas (US$37).
On quiet grounds about one kilometer east of town, rustic but friendly Hospedaje No Me Olvides (Camino Internacional s/n, tel. 098/8338006, US$15 pp) also has camping (US$3.50 pp). In season, it has fresh honey and fruit.
In a distinctive deco-style brick structure, run by an obliging family, Hotel Plaza (Balmaceda 102, tel. 067/411215, US$15 pp) has undergone a major rehab, with cheerful rooms but no frills (shared bath only, no breakfast). Some interior walls are a bit thin, but the major downside is that one exterior wall adjoins a thunderous weekend disco (litigation is likely, but meanwhile the hotel proprietors are candid about potential noise).
On the eastern outskirts, the Belgian-Chilean 
Hostería de la Patagonia (Camino Internacional s/n, tel./fax 067/411337, US$16/26 s/d) is an ivy-covered inn with large, rustically decorated but cozy rooms with private bath and breakfast (excellent homemade bread); there’s one tiny single with shared bath for US$13. Camping and additional meals are available.
Hotel Ventura (Carrera 290, tel. 067/ 411311, US$17 pp–US$37 d) is good and central. Hostería Austral (O’Higgins 501, tel. 067/411815, US$22/37 s/d with private bath) is also worth consideration.