Looking for the best tips on where to stay in Chiloé, in southern Chile?
The best place to stay in Chiloé
Editor’s Choice
The best place to stay in Chiloé is Castro, the island’s capital and largest city. Castro offers good infrastructure for tourists, including a shopping mall, currency exchange offices, tourist and traditional restaurants, bars, pharmacies, supermarkets, and quality hotels. The city is beautiful and is home to the iconic stilt houses (palafitos). Additionally, most of Chiloé’s tours depart from Castro.
The Chilean archipelago of Chiloé, composed of several islands, is located near Puerto Montt and Puerto Varas. It is one of the most exotic destinations to explore in Chile. An island with a rich history, legends, distinctive food and culture, and stunning, pristine scenery.
Despite being a large region, there are only a few good cities to stay in Chiloé. Moreover, most of the island’s towns lack the infrastructure to accommodate tourists.
Chiloé is an island with a simple and tranquil lifestyle, which is precisely what makes it such a unique destination. On the island, most hotels embrace this same concept, offering simple accommodations without much luxury. However, there are options for more discerning travelers, featuring hotels that combine luxury and simplicity in one place.
Discover the best hotels in Chiloé
Best luxury hotel: Cava Estancia Rilán.
Best hotels for couples: Entre Mar y Tierra and Cava Estancia Rilán.
Best family-friendly hotel: Palafito Loft.
Best hotels with a view: Entre Mar y Tierra and Alma Chilota.
Best budget hotel: Palafito Loft.
Where to Stay in Chiloé, Chile?
Castro and Ancud are the primary places to stay in Chiloé.
Castro is the capital of the island and the most popular city among tourists. Ancud, on the other hand, is the city closest to the Chiloé port. Although small, Ancud offers some very interesting hotels and restaurants.
For those looking to immerse themselves in the parks, Chilote culture, and the preserved nature of the island, hotels surrounded by nature and located in more remote villages are excellent choices.
- Castro: The most tourist-friendly city with the largest selection of hotels. Castro offers affordable hotels that combine charm and comfort without losing the simplicity and typical identity of the Chilote culture. This is the best city for those planning to take the main island tours and do not have a car. To stay well-located, choose hotels in downtown Castro, near the Iglesia de San Francisco, on Eusebio Lilo Street or Pedro Montt Street. For a more authentic experience, consider staying in a stilt house (palafito).
- Ancud: It is the second-largest city and is located just 30 minutes from Chacao, where the ferry arrives. It is from Ancud that tours for penguin watching and open-sea excursions depart. The biggest problem with Ancud is that most hotels are quite simple and lack basic services.
- Remote hotels: Chiloé offers excellent hotels located in more secluded areas or within the parks. These hotels are perfect for those who enjoy activities like hiking and wildlife observation, making them a great choice for disconnecting and immersing yourself in nature. Hotels in remote areas are recommended only for those traveling by car.
Best hotels in Castro, Chiloé
1. Alma Chilota
A beautiful and charming hotel located on Pedro Montt Street. Alma Chilota occupies a traditional wooden structure and is one of the hotels in Castro with the best views. Large glass windows ensure that guests can enjoy views of the sea and wildlife. The accommodation features beautiful decor that combines simplicity and comfort. The service is welcoming, and the breakfast is exceptional. The hotel’s standout features are undoubtedly its comfort, service, and stunning views.
2. Hotel de Castro
A well-located hotel in Chiloé, right in downtown Castro, close to the main points of interest. The property features typical architecture, and its rooms are simple but provide all the necessary comfort. The hotel also has a bar and restaurant, as well as a heated pool. The breakfast is good, but be mindful when booking, as some rooms are quite small.
3. Hotel Palafito Entre Mar y Tierra
This is our favorite hotel in Chiloé. It is located in a traditional stilt house and offers a stunning view of the sea. The decor is rustic yet modern, featuring wooden furniture and elements characteristic of the island. The rooms are comfortable and cozy. The service is excellent, and the breakfast selection is remarkable. Despite its renovated and modern interior, the hotel has preserved the original exterior of the stilt house. Opt for a room with a sea view—it’s perfect and absolutely worth it.
4. Palafito Loft
Another stilt house accommodation option in Chiloé. This property offers complete and cozy apartments with a beautiful sea view. The apartments are well-decorated and bright. Some units even feature a charming balcony with a view. With apartments that can accommodate up to six people, it is a splendid choice for families and groups of friends. Palafito Loft is located on Pedro Montt Street, about a 20-minute walk from downtown Castro.
Best hotels in Ancud, Chiloé
5. Hostal Vista al Mar HCT
A hotel in Ancud that offers “family rooms” at an affordable price. The rooms can accommodate up to four people, and some of them have a sea view. The service is friendly, and the property is located in a quiet area. This is a very simple hotel, so if you have high standards, it might be better to choose another place to stay in Chiloé.
Best remote hotels in Chiloé
6. Hotel & Cava Estancia Rilán
If you’re looking for luxury and comfort in a more remote location, this hotel is the perfect choice in Chiloé. A stunning boutique hotel located on the Rilán Peninsula, Hotel Cava Estancia Rilán is a modern property featuring a beautiful wooden and glass structure. The hotel combines simplicity and luxury, offering beautiful and comfortable spaces that blend harmoniously with the local landscape. It also has a restaurant serving dishes made with local ingredients and a delicious à la carte breakfast.
7. Hotel Aliwen
This hotel is located in Dalcahue, a small and traditional village in Chiloé. The property is housed in a building with traditional architecture and features a terrace with a beautiful view. The hotel combines simplicity and comfort, offering cozy rooms and a good breakfast.
8. Cabañas Torre Huillinco
Located in Huillinco, this accommodation offers cozy cabins with a lake view at an affordable price. The cabins are spacious and simple, making them ideal for families and groups. The location is peaceful and surrounded by nature. This is an ideal place to stay in Chiloé for those looking to relax in a quiet area with beautiful scenery.
9. Lodge Parque Tepuhueico
If you’re looking to immerse yourself in nature with plenty of adventure activities, this hotel in Chiloé is a great choice. Located in Parque Tepuhueico, the lodge sits in front of a beautiful lake. In addition to breakfast, the property offers accommodations with fully equipped kitchens and balconies with a view. The lodge also features a restaurant, bar, private beach, and bicycle rentals for those who want to explore the park.
Did you enjoy our tips on where to stay in Chiloé? Then, also discover where to stay in Puerto Varas, Chile!
PLAN YOUR TRIP TO CHILE
Ensure a stress-free trip by booking your hotel in Chile ahead of time
For an unforgettable stay in Chile, we recommend using Booking.com or Hotels.com, a platform we trust for all our travels. Offering a great selection of hotels at the best rates, you’re sure to find the perfect option for your stay, ensuring an amazing and affordable travel experience. Our favorite hotels in Chile are:
- Hotel Cumbres Lastarria (Santiago)
- Rakau Lodge (Pucón)
- Hotel Cumbres (Puerto Varas)
- Alma Chilota (Chiloé)
- Hotel Poblado Kimal (Atacama)
Make your trip easier by renting a car in Chile
With its stunning landscapes and charming cities, Chile is a great place to travel by car. If you’re planning to visit more than one city and want to enjoy maximum comfort and freedom, renting a car is the perfect choice. We recommend using Discover Cars and Rental Cars for your car rental needs.
Book your tours and experiences
You can save a significant amount of time on your trip by scheduling your tours in advance. Just imagine booking all your activities from the comfort of your home and paying with your credit card. We love and recommend using Viator, Civitatis, and Get Your Guide for booking tours and tickets.