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Hotel CostAustralis, Puerto Natales 
$$$$

See the Chilean Patagonia Guide ›
Pedro Montt 262
Puerto Natales
Chile
Tel: 56 61 412 000
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Concierge.com's insider take:

Accommodation within Torres del Paine national park is limited to two extremes: the big-price Explora resort or a tent. To find shelter from Patagonia's fickle weather without a big hotel bill, one possibility is to spend part of the time in Puerto Natales and drive the 90-some miles to the park (it's a three-hour drive, though, so you might still want that tent part of the time). Hotel CostAustralis is on Natales's waterfront, and while it's no cozy boutique, its 74 spacious rooms (many with ocean views) are a good value. The hotel's peaked chalet roofs look pilfered from Disney's Magic Kingdom, but the view overlooking Last Hope Sound is superb. Extra points for its restaurant, Paine, with sautéed king crabs directly from the ocean, succulent lamb cuts, and Patagonian specialties such as conger eel, hare stew, and roasted salmon served with a shellfish sauce.

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