One of Pucón [1]’s best midrange values is Hotel Cabañas La Palmera (Ansorena 221, tel. 045/441083, fax 045/443127, US$37/49–41/57 s/d), which also has garden cabañas.
With its spa and other upgrades, Hotel & Spa Araucarias (Caupolicán 243, tel. 045/441286, www.araucarias.cl [2], US$50/70 s/d) is an exceptional value with IVA discounts. It also has a small but impressive museum of Mapuche artifacts.
Set on ample grounds, with a large pool, Hotel La Posada Plaza Pucón (Pedro de Valdivia 191, tel. 045/441088, fax 045/441762, www.hotelplazapucon.cl [3], US$65/84 s/d) has midsized rooms in an older upgraded building. It also offers accommodating management.
Under new English-speaking ownership, fronting directly on the lake, the classically aging 
Hotel Gudenschwager (Pedro de Valdivia 12, tel./fax 045/442025, www.hogu.cl [4], US$64/80 s/d) has reinvented itself as a B&B with modernized rooms (all have private baths) and wireless Internet throughout. That lakefront location may expose it to Jet-Ski noise pollution at times. Off-season (mid-March–mid-December) rates around US$22 per person make it a possible backpacker splurge.
Links:
[1] http://www.moon.com/destinations/chile/sur-chico/pucon
[2] http://www.araucarias.cl
[3] http://www.hotelplazapucon.cl
[4] http://www.hogu.cl