Pucon is a small town with a concentrated "downtown" area of restaurants, stores, tour companies, and everything else you need within a small area.   Everything is within easy walking distance of this hostel, hotel.  We really enjoyed the town and there are a lot of outdoor activities here for everyone.  The area is dominated with a view of the Volcano.   The lake is on the other side of the small town from this hotel, but it is only about a pleasant 8 minute walk away.  The room that we stayed in for 3 nights, "Buffalo", was clean with a king bed that was comfortable.  It is a bigger room with 2 bunk beds also, and a private shower tub bathroom.   The hostel, is in a quieter area, as it is about 80 yards off of the main street, and not on the main street itself.   This is not a 5 star luxury hotel, but a good, clean, pleasant place to stay that is close to everything.   I would stay here again and again.  .