The Hostal is in a nice (bit touristy and poshed) area of the city but if tou walk down 10 minutes from the hill you find "normal" Valpo life. The staff is welcoming and helpful and have suitable Tipps for every interest (such as a Heavy metal Bar, serious museums, golden crowded beaches as well as small lonely ones or the average chilenian income). The owner had many helpful advices for our trip to the chilenian south. The breakfest is, as the homepage states, very delicious and healthy. We loved it.

The Luna Sonrisa is a really nice Hostel.
We stayed there for 3 nights and had a wonderful time.
The walk up on the hill is really worth it, because the hostel is just great.
For the first 2 nights we stayed in a double bed room with shared bathroom.
The bathroom is really clean. The room is comfortable and has everything you need, so a bed, a door to lock the room and a little rack.
The most special thing the Luna Sonrise offers is their breakfast. You get coffee as much as you like, fruits, wholewheat bread and a really good cheese. The bread is made in the owners wife's bakery just a little more up the hill. Hmmmmm.
We also were so lucky that we could stay in the apartment upstairs for one night because for our 3rd booked night there was no proper room left. So we could stay in the stunning apartment for the same price as the double bed room.
If you really want something special and you are not so lucky than we were, spend the money to stay in this great apartment. Even for the price they charge it is quite cheap for this luxurious place to stay. The view is stunning, the kitchen is great and you could also have your breakfast delivered in front of the door in the morning...
From the Hostel it is also very easy to get to Vina del Mar or the bus terminal because buses are leaving from a 2 minutes walk station.
So all in all a really great place to stay with friendly and helping staff
Contact me for more information

Highly recommended. We stayed 4 days in the upstairs apartment. It is large, clean, well furnished and stocked. There are 2 sleeping areas, plenty of seating, good size dining table, and nice kitchen. The apartment and common areas are very well maintained, and the staff are welcoming and helpful. The neighborhood, Cello Allegre, seems one of the more desirable in the city and has restaurants, a fruit market, and mini-markets. City bus service is two blocks up the street.

Wi-fi in the apartment is ok if you select your location in the apartment carefully (the signal seems to make its way up the stairs).

This would be our first choice if in Valparaiso again.

Our group of three stayed in the ‘El Nidito I’ suite and loved it. The suite had a kitchen, living/dining room, bath and two sleeping areas. There was a great view of Valparaiso from bathroom and a view of the harbor from the front windows looking down the street. Breakfasts were excellent with a generous serving of fruit, bread from his Janak’s wife’s paneria, good rolls, excellent coffee and juice. Hot water is from a 'just in time' water heater, and completely sufficient, but does have a learning curve.
Luna Sonrisa is in a great location. Much of what you want to see in Valparaiso is in neighborhood, including many good restaurants in the neighborhood. (We recommend Malandrino just around the corner for great pizza.)
All the staff is helpful though Janak Jani, the owner and manager though busy is exceptionally knowledgeable, not only about Valparaiso but about all of Chile since he wrote the Footprint “Chile Handbook”, reviewed by Michael Palin as “Sets the pace for the rest to follow”. They give you a great map of Cerro Alegro and the surrounding areas with restaurants, cafes, ascensores (funiculars), bus and collectivo stops, supermarket, ATMs etc. all marked. One example of their thoughtfulness is that they supply empties of returnable beer bottles you can ‘borrow’ to use get full ones that are significantly cheaper than the beer in non-returnables.