In Frutillar, hostels and hotels are more expensive than other areas of Chile because the area holds a swanky "resort town" status. In fact, spas and bed and breakfasts are clustered around the lake, while Frutillar hostels are hard to come by at all. With individually decorated rooms and tons of amenities, Hotel Ayacara Frutillar is the obvious choice if you're looking to spend some cash, but there are other options close to lake that cost half as much (around $35). Be advised that prices for Frutillar hotels go up during the Chilean summer months of December, January and February. Frutillar hotels are also pricier during Frutillar's yearly music weeks, or Semanas Musicales, held in February. Book in advance or else you'll find yourself paying a premium.