The best area to stay in Puerto Williams is directly in the town centre, particularly along the main street, Arturo Prat.
This is a small, remote town, and the centre is where you'll find most of the available accommodation, dining options, and essential services. Arturo Prat Street runs parallel to the Beagle Channel, offering views of the water and the mountains. You'll find the local museum, the tourism office, and a few small shops concentrated in this area.
For solo travellers and couples, staying in the centre provides easy access to everything. You can walk to the Micalvi, a historic ship often used as a yacht club, and it's the starting point for many local excursions, including hiking the Dientes de Navarino circuit.