Hotel Colonial is located on Salvador Cucurullo between 30 de Marzo and Calle Espana. I did not place it on my Santiago Map, but it would be located just southeast (down/right) from the intersection of 30 de Marzo and Las Carreras on the map.
Colonial is supposedly guest friendly and prices are a great bargain at less than $10 US per night, but the rooms I saw at the time looked like short time rooms, very simple and bare. I had concerns about keeping any of my expensive equipment here.
I noticed that there was a new wing next door, but I didn't visit it. I probably should have as on a later return to their website, I saw new photos up of rooms from the new wing. These appear more to be my style and I assume they are less expensive than Hodelpa Centro Plaza and Hodelpa Gran Almirante.
If anyone can check this place out, I would love to hear more about it. I will likely check again next time I'm in Santiago.
Hotel Colonial
Salvador Cucurullo No. 115
http://www.geocities.com/hotelcolonialsantiago
Tel: (809) 247-3122