You will like Chile and the area around the Lake District (or further south in Tierra del Fuego). In terms of hotels, the Hyatt is a good choice in the eastern side of the city. It's where a lot of foreign politicans stay when they visit. Another "leading hotel of the world" choice with more local flavor is the Hotel Carrera in the downtown part of the city, which is within spitting distance of the main government palace square (forget the exact name but there are still bullet marks visible from the 1973 coup). The rooms in the Carrera can be cramped though (and no miles unlike the Hyatt)