Frutillar’s accommodations scene is strong at the mid- to upscale range, but real budget alternatives are relatively few; during the annual music festival, prices can spike even higher than regular summer rates. All listings below are in Frutillar Bajo, but Frutillar Alto has a handful of cheaper residenciales.

Only a block from the beach, Hospedaje Tía Clarita (Vicente Pérez Rosales 743, tel. 065/421806, claritaalmonacid [at] msn [dot] com, US$14 pp) is a friendly, family-run place that lacks the elaborate German colonial style of Frutillar’s more expensive options, but it compensates in other ways.

Also notable for its teahouse, Hospedaje Trayén (Philippi 963, tel. 065/421346, tttrayen33 [at] hotmail [dot] com, US$19 pp with breakfast) has rooms with private bath and cable TV; some have balconies with lake views. Down the block the Hostería Winkler (Philippi 1155, tel. 065/421388, US$19 pp) is comparable.

With just eight tasteful rooms, occupying a historic house dating from 1911, Hotel Kaffee Bauernhaus (Philippi 663, tel. 065/420003, aledoepking [at] yahoo [dot] com, US$60 s or d) is more a B&B than a hotel, but it’s a very fine one.

On a hillock with colorful flower gardens, Hotel Frau Holle (Antonio Varas 54, tel. 065/421345, frauholle [at] frutillarsur [dot] cl, US$46/83 s/d) embodies Frutillar’s best. Frutillar in general is pretty quiet, but it’s even quieter at Hotel Casona del 32 (Caupolicán 28, tel./fax 065/421369, US$55/68 s/d), at the north end of town; it’s open in summer only, however.

Hotel Residenz am See (Philippi 539, tel. 065/421539, fax 065/421858, US$74–92 d, www.hotelamsee.cl, hotelamsee [at] surnet [dot] cl) offers rooms with private baths and a European-style breakfast.

Renovated Hotel Ayacara (Philippi 1215, tel./fax 065/421550, www.hotelayacara.cl, US$99–125 d) occupies a gabled century-old lakefront mansion; each of its eight rooms—the more expensive enjoy lake views—is distinctive. Rates include a full German-style breakfast, including homemade kuchen.