Casa Kalfu Boutique Hotel

Built from native Patagonian woods, the hotel has retained its historic feel with framed sepia photographs, ceramic knick-knacks and original fireplaces, whilst also adding quirky, local touches. Its top-floor breakfast room has a glass-roofed terrace where 'jar' lamps hang from the ceiling and the indoor section is decorated with painted cat statues. The lounge area has plenty of cushy sofas and fluffy rugs, all warmed by a wood fire, and there's a casual brick bar too. Both overlook beautiful Lake Llanquihue.

The rooms are homely and light with tapestries designed by Chilean-Spanish artist, Kika Xicota, and large beds topped with quality linens and colourful throws. All face enormous picture windows with views of the lake - and some of the Osorono Volcano. All rooms have central heating and thick walls, so you're unlikely to hear your neighbours. Practically speaking, there is only one rugged 'found wood' shelf, meaning little luggage storage space, and whilst the bathrooms are small, they are pristine.

Just a short walk away, the lake is a beautiful spot for walks and boat rides, while kayaking and rafting is also available along the Petrohue River. While you're in the vicinity, Petrohue Falls are stunning, so why not request a picnic and make an afternoon of it? There are tons of nearby walking and biking trails and for the more adventurous, visit Osorno Volcano (there's skiing in winter and trekking in the summer). Discover more of Puerto Varas at its museums and historical churches, and markets where you'll pick up fantastic chocolate and wine.