Termas de Cauquenes is the best place to stay and eat that my husband and I have ever been. We are world travelers and enjoyed Chile tremendously with the highlight being Termas de Cauquenes. The rooms are very nice, but it is the food and scenery that makes it the best. It is owned by two chefs who will surpass any taste expectations with 10 course meals at dinner. Deffinitely take the half or full pension option to eat dinner at the hotel. The hotel is located in the Andes foothills on the edge of a cliff overlooking a river and surrounded by eucalyptus trees. With the hot springs, pool, tennis courts, extensive park along the ravine, and hiking trails in the nearby national park. The staff goes above and beyond. I really cannot express how much we loved Termas de Cauquenes.
We got into town in the middle of the night and a guy at the corner store sent us to this place. Think "rustic" and you'll be fine. The price was 35,000 pesos (apprx $55). Each "cabana" is one room with a double bed and bunk beds and comes with tea & bread each morning. The neighborhood is close to the beach, but not pretty. So, this place is best for the adventure/camper/hostel traveler. Walk 1 block to the north, turn left and 1 block towards the beach on the right you will find a really GREAT sandwich restaurant!!