Arica Surf House Hostel is located at O'Higgins 661. Good location, about 10-20 minutes walking to most sites.
The good:
Good location.
Wonderful staff. The place is owned by a couple with a little son (and maybe another on the way) and they are extremely friendly and helpful. They both speak fine English. Oh and the mutt...funny dog that just sleeps all day on the floor blocking traffic.
Nice, open-air atmosphere. The building is secure with a locked door at the front, but inside, the roof is removed in certain areas, which creates a comfortable, breezy common area. Comfy, worn-in sofas with a big TV with cable makes a nice place to meet other travelers. Computer with internet available for free. Also WiFi, although it didn't work on my mac (it did work for other travelers though). Full kitchen available for common use.
Supposedly they organize surf lessons and tours, which I did not do, but other travelers seemed to enjoy. I think they have the surfboards and other gear available for rent.
Cheap...my single room (with shared bathroom) cost $7,000 CLP per night.
Online booking (although you have to pay a deposit...not much though).
Lots of westerners (good for bonding with fellow travelers, but bad for meeting Chileans).
The bad:
No hot water when I tried to take a shower, although you might have to ask to have it turned on or something.
The walls are very thin and if your room happens to be located in the main hallway (as mine was), you get the traffic of people entering and leaving the hostel. So I recommend bringing ear plugs.
No breakfast offered.
Overall very nice experience and would recommend.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC