Chillán [1] has a good selection of budget and midrange accommodations, but not much in the upper tier. Only a few include breakfast in their rates.
The simple Hostal Canadá (Av. Libertad 269, tel. 042/234515, US$9 pp) is friendly enough, but the rooms are a little dark. Well-established Hospedaje Sonia Segui (Itata 288, tel. 042/214879, US$9 pp) has a more cheerful aspect and a quieter location. The drab Claris Hotel (18 de Septiembre 357, tel. 042/221980, US$9 pp with shared bath, US$16/25 s/d with private bath) will do in a pinch.
Hotel Javiera Carrera (Carrera 481, tel./fax 221175, tel. 042/244360, hotel.javiera.carrera [at] terra [dot] cl, US$23/29 s/d) has tiny rooms and truly claustrophobic showers, but also remarkably attentive staff for an inexpensive hotel.
Though it gets some short-stay trade, the motel-style Hotel Los Cardenales (Bulnes 34, tel. 042/224251, US$23 s–US$30 s or d without breakfast) also manages to attract families to its spotless rooms, with cable TV and private bath, but the singles are microscopic and their private baths even more so. Other rooms are substantially larger.
Hotel Floresta (18 de Septiembre 278, tel. 042/222253, US$24/33 s/d with private bath and breakfast) is also a good choice in its range.
At a busy intersection at the southeast corner of the plaza, family-run Hotel Cordillera (Arauco 619, tel. 042/215211, fax 042/211198, www.hotelcordillera.cl [2], US$37/49 s/d) is a comfortable option that readily grants IVA discounts to foreigners.
Quiet despite its busy corner location, Hotel de la Avenida Express (Av. O’Higgins 398, tel. 042/430672, hoteldelaavenida [at] entelchile [dot] net, US$33/59 s/d) has just eight smallish rooms, but it’s almost immaculately kept and now offers IVA discounts to foreign tourists. Rates include a forgettable breakfast, wireless Internet, and parking.
Hotel Paso Nevado (Av. Libertad 219, tel. 042/237788, fax 042/237666, US$54/64 s/d) has undertaken recent upgrades but sits on a busy street.
Hotel Las Terrazas (Constitución 664, 5th floor, tel. 042/227000, fax 042/227001, www.lasterrazas.cl [3], US$66/73 s/d) is a very fine place, with a business center, that’s also just opened an equally fine across-the-street annex.
Facing the plaza, Gran Hotel Isabel Riquelme (Arauco 600, tel. 042/213663, fax 042/211541, US$74/89 s/d) is a traditional favorite; foreigners should ask for IVA discounts.
Links:
[1] http://www.moon.com/destinations/chile/-chilean-heartland/chillan
[2] http://www.hotelcordillera.cl
[3] http://www.lasterrazas.cl