The hosteria is close to the bus station, which is nice as all the buses to Torres del Paine depart from that station. It is also close to several supermarkets and restaurants. The hotel itself is very basic, nothing fancy.
Our group booked three rooms in separate reservations. Somehow the hosteria could not find two of the three reservations. When we showed the staff the photocopy of the reservation, they said the hotel was full. There was nothing they could do. After talking to someone on the phone and emailing that person our reservation, the staff eventually found a quad room so that the four people who reserved two rooms could stay in one room instead. I have used hotels.com for many years, and this is the first time this happened. I don't know what caused the problem.
Overall, the hosteria is fine for a one-night stay, if you just want a place to sleep. And it is better to contact them in advance to make sure that they have your reservation in their system.