We stayed in the house. Our room was quite small but the bed was very comfortable and we slept well. We shared a bathroom with another room (which we knew when we booked) and this worked out fine. Alejandro and Frances are very friendly and helpful and booked us on the Pira tour penguin tour (the only tour that actually lands on the island) before we arrived as places are limited. Breakfast is served around a big table so you can chat to other guests who come to eat at the same time as you - we learned some useful info from people who had already been to some of the places we were heading to - thanks to the French couple who said El Chalten was a must. There were 2 computers with high speed broadband available for guests to use all day/evening which was a better facility than in some larger places. Location was good as it was only a short walk to the main street and harbour area. All in all a great place to stay.

Most of the reviews are about staying in cabins, but we stayed in the main house, which is basically their home. Their 3 adult sons were home for the holidays, and at first it seemed kind of weird. But the owners were incredibly hospitable, and really easy to talk to. We were about to go on an Antarctic cruise, and everyone at the B&B that day were destined to be on that cruise, so it felt like a pre-cruise party. At night, it was one of the quietest places I've ever stayed in, and I slept like a baby. They also were completely understanding of the timing of our cruise, and had no problem with us all showing up in the afternoon, while their new guests were arriving, to pick up our stuff. It's "out of town", by which they mean 4 blocks away from downtown. The town is so small that being out of town is meaningless. I would stay here again in a heartbeat. I highly recommend it.

we stayed in one of the cabañas and felt like being in a cozy Swiss chalet. the owners are very nice and helpful.
If you don't mind the price (and the dogs) then this should be your choice!

The Galeazzi-Basily B&B might be difficult to say, but it’s a place that’s easy to love. The cabins are also called “Aves del Sur” which is much easier to remember and pronounce! We stayed in the Golindrina cabin and were extremely pleased with our five-night stay. There is plenty of room in the cabin and the bed is comfortable (terrific comforters on the bed!). There is a small, efficient kitchen. There is lots of hot water (on demand heat system) and an efficient heater for the cool Ushuaia weather. All in all: a cozy and comfy cabin!! Outside, there is a deck with great views of the mountains (and deck chairs to sit on).
Alejandro (the owner) is very helpful and friendly. He gave us an excellent map as well as suggestions of what to do and where to find things. The location is within easy walking distance (five minutes) to the main streets of town and the port.
The cabin is stocked with juice, coffee, cornflakes and bread for making your own breakfasts. There is a supermarket just a few blocks away if you want to pick up any groceries. To the west of the supermarket, half a block away is a laundry that provides good service at reasonable prices.
The cabin has lots of big windows as well as many ceiling lights, so it is bright in the daytime as well as at night. There is good Wifi connection in the cabins if you have your own laptop, plus there are two computers in the house that guests can use. We were able to store our bags at the B&B for eleven days while we did a trip to Antarctica.
We would highly recommend these cabins to stay in Ushuaia. We couldn’t have asked for anything better.