I had a great experience in Hostel Keoken, and only regret that I didn't have time to stay longer. The rooms were clean and cozy, the beds had down comforters (definitely a plus for a place so far south!), and the hot water worked great when I took a shower. They have a kitchen with all the pots and pans you need to cook, and I met some really interesting fellow guests, 30-something travelers, when I was making dinner. The breakfast they provided in the morning was great.
The only criticism: They didn't seem to understand that we were in a hurry to catch a bus, or didn't explain this to the taxi, so I wound up arriving at the bus station a little too close to the departure time for my comfort.
This place is slightly removed from the action, maybe 10 minutes' walk from the Bus Sur station. It was a great place to rest, especially since many travelers in Punta Arenas are on their way to or from some really intense outdoor adventure... I only recommend that you try to avoid having an 8:30am bus the next morning like I did, so you can sleep in and enjoy the very comfortable beds!
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