This flashpacker hostel sitting on Palafitos Gamboa revolutionized Castro when it opened in 2008 and was the catalyst for turning the city into a hip destination. You pay more for a dorm here, but the quality outweighs the difference (as do the lockers), with great breakfasts, dreamy views and a cabin-cool feel throughout.
Private parking runs CH$4000 per night but you can find spots on the street.