Hotel El Castillo Niebla

With a strong US dollar, the Castillo offers excellent value these days. You get a 19% discount (the tax) if you are a foreigner and pay in cash (dollars). I'd recommend the newer apartment units over the original historic rooms: they are larger, more comfortable and have great views. My apartment cost less than US$50 -- a steal. This is a very good, boutique property. My only hesitation in recommending a visit is that the dining scene in Niebla is pretty bleak these days. The better of the two seafood restaurants across the street has closed. I understand there is a good seafood market with prepared foods in summer, but it was closed when we visited in late November. For breakfast, there wasn't even a bakery in town. So I'm not entirely sure it's worth the detour from a Lake District trip. That said, if you were planning on visiting Valdivia, this is a good place to stay as it's only 15 minutes away from town and MUCH more scenic and relaxing. While many locals come to Niebla for the beaches, foreign tourists will probably only be interested in the old Spanish fort, and the lovely sea views.