La Posada Del Embrujo is a really cozy hostel in Pucon. The beds are really firm and new and the rooms are very clean. The bathrooms are spotless. There is a large communal room with cable TV and internet and a huge kitchen with all the equipment you could possibly need to cook any kind of meal.
The women that run the hostel are so helpful and accommodating. They can help reccommend things from restaurants to the best tour companies. This is one of the friendliest and warmest hostels that we've stayed at. The price is low for Pucon and is a great deal. Anyone coming to Pucon should jump at the chance to save $$ and to enjoy the comfort that the hostel provides.