It's a nice old German style house. It's less than 5 minutes walk from downtown. Clean place, nice furniture, great view to Llanquihue lake (if you're lucky and it isn't cloudy, you can see the Osorno volcano from the rooms), and friendly staff.
We stayed here one night only. The breakfast was very good.
Negative aspect: everything happening in the next room can be heard. So, be careful and don't speak loud ;-)