Fodor's Expert Review Hotel El Castillo

This grand 1920s German-style house sits at Niebla's main intersection near the picturesque coastline and has been converted into a lovely bed-and-breakfast with lots of knickknacks, antiques, and cuckoo clocks in the common areas. Just a half hour drive from the center of Valdivia, the rooms have modern amenities but retain their old wood-finishing and overlook either the sea or the pool and back gardens.