The choice isn't where you want to stay in Punakaiki - it's which cottage at Hydrangea Cottages you want to stay in. I can only speak for the Miro Cottage, but it was perfect. We had a comfortable bed with nice linens facing the ocean with large doors that folded back and completely opened to a sunset view. The cottage had an outdoor tub and small private porch. It was within sight of the Pancake Rocks and while not actually "on" the beach, it had the same view, if not better. However, if you 're looking for that hotel you run out of your room across the sand and into the water, you need to look further, they are there also. (I'll be up at the Hydrangea Cottages.) Dining choices are very limited, we had one, the Tavern. It was pretty good but if you are planning on an extended visit, and I can't imagine why you would, you might want to bring some groceries with you and get a room with a kitchen.
Room Tip: We stayed in Miro (1 BR) and it appeared to have most privacy and one of two best views of all cotta...
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