First, its web site is http://chilloutbeachhouse.com/. The Chileans will refer to it as Hostal La Ponderosa.
We stayed two nights there in November in order go bird watching at the Rio Lluta Bird Sanctuary, which is just a moderate walk away. The place was a little disorganized but more than adequate for what we needed. They were in the process of expanding (building a dormitory and a common room/kitchen) and the restaurant wasn't fully open. We pretty much had the place to ourselves. The manager (Fernando, if I remember correctly) made us breakfast, lunch and a dinner and is quite a good cook. We enjoyed our beach view and breezes from our room's front window and balcony. The room was spacious but could have been a little better provided; for instance, I had to ask for soap. Judging by the website, the Ponderosa is almost over its growing pains, but I would check on the details before I booked: is the dormitory open yet?, etc. This place should appeal to a budget traveller who wants to enjoy some quiet beaches, or the bird watcher who wants to overnight near the bird sanctuary so they can visit it in the early AM. Note that the place is somewhat isolated. There is a restaurant nearby and, if I remember correctly, a small store.
One thing I want to note and praise is the personal attention we received from Fernando. He helped us out on a number of occasions. The key event was when our taxi to the Tacna border crossing didn't show up. Fernando drove us to the border and helped us navigate the bureaucracy and hire a Peruvian taxi driver to take us to the Tacna airport.
Feel free to contact me if you want to know more: Rick and Lorie