Update:
Currently staying at Casa Matte in Santiago. The hostel is clean, run by lovely people, and in a good area of town.

Here are the phone numbers:

+56 9 9879 8389
+56 9 6238 2970

Email:
hostalcasamatte@gmail.com

I stayed in Casa Matte roughly for a month and enjoyed it very much.
Cris and Francisca are very friendly and i got a lot of help with all that was necessary to find, buy, modify and equip the bike i wanted and navigate the process of official paper work involved.
There is also enough space and tools to repair your bike. If not, Cris will have a good recommendation on where to go to have it repaired or even special jobs like having something soldered or for electronics.
It is very centrally located, quiet, but there were always the right people to have a drink or two or more...
Got a lot of good recommendations on the best tracks in Chile as well.
During my travels in South america this hostal was certainly the best i have been to.

Directions: see the other posts above.

Gracias Francisca & Cris!

I went back to Casa Matte and spent another thee weeks in there while selling my bike. Once again, SUPER friendly and nice. A lot of help with all sorts of stuff.

A lot of different people on bikes from all over the world came by and shared stories. Some on big bikes, some on small. Some of them were alone, some together. Some stayed for a long time and some just stopped by to have a quick cup of tea.

In total I spent more than six weeks there and I will go back to visit the guys on my next trip.

Go visit them, even if it is a detour. It will definitely be worth it!

Cheers, Erik

Hey.

Just got back from Chile. I stayed here
La Casa Roja | Santiago Hostel
Run by aussie guy, nice people, good atmosphere. In good location near lots bars etc. Bike parking.

__________________
Steven
Perth to Perth 2012

I'm want to reiterate the great things others have said about Casa Matte. Great place, has everything you need, muy buena onda, lots of fun.
I arrived with a broken KLR and got loads of help from everyone in the hostel. Parts, customs/aduana questions, everything.
Have left my bike at the hostal for a couple of months now too and Christian (owner) has befriended the Aduana so he knows the bureaucracy and it's easy to deal with!
I'll be back again and not only because my bike is there.

I'll take this opportunity to say what a good time I have had staying in Casa Matte for the past month +, met alot of good people during my time here.

It is run by Cristian and his wife to be Francisca who have been very kind to me and everyone else here. It has been a home away from home for me. The location is very good, Providencia is a great jumping-off point for Santiago, and Santiago a great jumping off-point for South America. Secure Parking behind a locked gate and out of the rain. The Rooftop Terrace is a nice place to relax and when the air is clear, has great views of the mountains.

As some of you are aware there was a recent change in the procedure for buying a bike in Chile, you now need a local to go with you to a Notaria and sign on your behalf to act as your representative. Cristian kindly did this for me and between him and his Father Pompeyo they will be able to recommend mechanics (Johnny Moto's is highly regarded by all who have used him), fabricators, specific shops for parts etc. and just generally good routes and share their love of all things two wheeled. (Especially if it has a Yamaha badge!)

Its not a backpackers hostal, its pretty much only bikers which is nice as you don't need to worry about keeping your things locked in a safe etc.

Thanks Cristian, Francisca and Pompeyo for all the help so far, I'll be back!