Puerto Natales is a city at the lower end of the route sailed by the Navimag, in southern Chile, and is basically a place for tourists to sleep before and after visiting Torres del Paine National Park. It's got approximately three million hostels, hotels, and hospedajes. There's not really much interesting in the town itself, but there is a nice hike a short taxi drive away: up Mirador Dorotea. A great place for backpackers to stay is
Erratic Rock. They have all the advice and gear (to rent) that one might need to hike in the park.