Over the past five years, Chiloé’s hotel offerings have taken a quantum leap, with world-class luxury lodgings beginning to appear on the mainland. But the islands are still mostly dominated by smaller, more reasonably priced hotels. Castro and Ancud have the most choices; Chonchi, Achao, and Quellón less so. Central heating and a light breakfast are standard in better hostelries. Not all places, especially in rural towns, take credit cards, but ATMs are more readily available than you might expect.
Outside the major cities, hospedaje (lodgings) are few and far between. But in summer, they seem to sprout in front of every other house in Castro and Ancud, as homeowners rent rooms to visitors. Quality varies, so inspect the premises before agreeing to take a room from someone who greets you at the bus station.