Since the name Casa Azul was taken, the Chilean-Argentine couple that runs this excellent midrange choice opted for kalfu (Mapudungun for 'blue') instead. And what a big, bright, beautiful blue it is. The home is a renovated 1940s chalet that now holds 19 rooms, simply and minimally decorated with large oveja (natural wool) wall hangings by renowned local artist Kika Xicota.
The owners are very hands-on, giving Casa Kalfu a more personal feel than many others in town, and the house is perched just high enough for lake views from its pleasant terrace.