My wife and I stayed 3 weeks in Santiago, and most of that time we spent at Hostal Providencia.
We spent the first night in another Hosatal (in Bellavista) and the price was almost double what we paid at Providencia.
We particularly like the relaxed atmospher, really helpful staff and the mix of people we met there.
Since we spent almost 3 weeks there and because we liked it I took the time to write a more complete review, so here it is:
We had a double room with a 2 person bed with a shared bathroom.
- very good breakfast: bread + 2 sorts of jam + real botter + milk, coffee, tea + cereals + fruits
- living room with large LCD TV
- 2 kitchen for us to cook + 2 eating rooms
- free wifi (works fast)
- occasional BBQ and sushi parties for very good price
- idealy located (close to Baquedano metro and Parque Bustamente metro)
- staff young and eager to help with useful information about the city
- we received towels
- they have 2 computers for you tu use for free
And we met tons of other travelers, some of whome became friends.
Really this is a great introduction to Chile.