Here is a list of all the best places to stay in Chile.  More to come as I work my way North.  If it’s on this list I had a good time there and can personally recommend staying with them.

City	Hostel	Price at Time of Booking	Rating	Pros	Cons	Date of Booking	Booking Link
Ancud	Hospedaje Austral	19 USD For Twin Private	9/10	Amazing owners. Comfy Private Rooms. Lots of help organizing things to do.	A little out of the center, and no dorms.	March 16th-18th 2015	Hospedaje Austral
Arica	Sunny Days Hostel	17 USD for 5 bed Dorm	8.5/10	Friendly owner, no bunk beds, good location and wifi.	I was only here one night, couldn't get a feel of the town itself	March 3rd 2015	Hostel Sunny Days
Dalcahue	Lanita Hostel	19 USD for 5 bed dorm	8.5/10	Comfortable non bunk beds, very friendly owners, good breakfast available. Good location in the center	Located in a very small town without too much to do, but well connected by bus.	April 8th-10th 2015	Lanita Hostel
Horcon	Cabin by the Sea	14 USD Per Person for 2 Bedroom Cabin	9/10	Amazing place at an amazing value Comfortable beds, unbeatable location, friendly owners.	No Wifi	March 11th-13th	No link, go to the ocean front of horcon, walk left and go one property past the big hotel.
Puerto Natales	Yagan House Ecohostel	22 USD Per Person for 4 Bed Privae	9/10	Amazing common Areas, Super comfy beds, Great breakfast and trekking advice. The best place to base yourself for Torres Del Paine.	Rooms are a little small	March 22nd-27th 2015	Yagan House
Puerto Varas	Ellen Haus	15 USD Per Person - 4 Bed Private	8/10	Clean Rooms with Good wifi in a great location. Amazing kitchen spaces.	A very big place that can feel a little like a maze.	March 19th-21st 2015	Ellen Haus
Puerto Varas	Margouya Patagonia	15 USD for 5 Bed dorm	9/10	Amazing spacious dorms, Friendly staff of Volunteers, Great social Atmosphere. Good kitchen and wifi.	A little ways up from the lake but not much.	March 28th to 30th 2015	Margouya Patagonia
Pucon	El Refugio	11 USD for 6 bed tent (full beds and electricity) 15 USD for 8 Bed Dorm	9/10	Great location near the centre and buses, Friendly staff, comfy beds and great social atmosphere.	Wifi is occasionally spotty.	April 13th to 22nd 2015	El Refugio Hostel
Punta Arenas	Hostal 53 Sur	20 USD Per Person 4 Bed Private	8/10	Great Pancake Breakfast, Warm place to brave the cold, nice social spaces.	Rooms a little cold.	March 21st 2015	Hostal 53 Sur
Santiago	Castillo Surfista Hostel	17 USD 6 Bed Dorm 20 USD Per Person Twin Private	8.5/10	Great Social Garden space, Amazing skateboarding Dog, Great Location and comfy beds.	The owner can sometime be a bit flakey.	March 6th-9th 2015	Castillo Surfista Hostel
Santiago	Traveller's Place Hostel	14 Dollars - 5 bed dorm 20 Dollars - Triple Private	7.5/10	Good social atmosphere and lots of common space. Good Location close to the centre of the city.	Beds are not very comffortable, and common bathrooms sometimes run out of toilet paper.	March 13th-15th 2015	Traveller's Place Hostel
Valparaiso	Casa Verde Limon	19 USD Per Person for Private Twin Room	8.5/10	Spacious Rooms, Lots of common Areas, Good location for exploring the city.	Can be noisy at night. Dogs and people outside make quite a ruckus.	March 9th to 11th 2015	Casa Verde Limon