In Valparaiso you find a lot of very nice, mostly colonial hotels & hostels. An option which is also affordable is Hostal Jacaranda. It is based in two different buildings, a smaller house with a garden and the one in a colonial building newly renovated. Each room has a different color concept and is stylishly furnished. Both buildings have a kitchen you can use.
The area around the Hostel is a nice dynamic neighbourhood with lots of good bars, restaurants and little shops.
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