In the middle of the southern Andes is the unexpected Magic Mountain : a man-made volcano with a stunning waterfall cascading down its side . It 's also the home to the spectacular Montaña Mágica Lodge , a luxury hotel in the heart of Patagonia 's 300,000-acre Huilo Huilo Biological Reserve . Looking as though it 's been plucked straight out of a fairy tale , the hotel is completely made out of wood and stone , and would no doubt be at home as a background set for The Hobbit . Scroll down for video . In the middle of the Chilean Patagonian rainforest is the Montaña Mágica Lodge , a luxury hotel built inside of a man-made volcano . Located under the majestic Andes Mountain range , the unique hotel is right in the middle of one of the most valued - and endangered - regions in the world . Aside from simply relaxing inside the one of a kind hotel , venturing into the rainforest offers guests the opportunity to spot many unique animals , such as the Pudu Deer , which is the world 's smallest at just 13 inches tall . Inside , the five-floor hotel boasts an all-natural decor in its 13 small rooms , as well as several hot tubs carved out of gigantic tree trunks , and an intimate bar and restaurant area . But to experience the 'erupting ' hotel , guests will need to brave a swinging rope bridge to enter , as it is only accessible by foot . The inside bar and restaurant is just as beautiful as the exterior , with it 's all-natural wood and stone decor . If you 're lucky , you may even spot the adorable 13-inch Pudu deer - the world 's smallest - which lives on the nature reserve . The luxury hotel is only accessible by foot and all guests must walk across a suspension bridge in order to reach reception . Among the activities on offer are mini golf , where the holes are made out of the natural terrain , horseback riding , rafting , plenty of hiking trails and a chance to try the longest zip wire in South America , which runs through the nature reserve at a height of 1,500 feet . Montaña Mágica is part of the larger Huilo Huilo complex , with also includes the interconnected Baobab Hotel , which can be reached via a suspension walkway , and several other nearby lodges . Prices at Montaña Mágica range from £150 to £260 per night , which is a steal considering that some neighbouring hotels can go for as high as £1200 a night . The lodge is located in the 300-acre region of Huilo Huilo Biological Reserve in Patagonia .
In the middle of the southern Andes is the stunning Montaña Mágica , a luxury hotel housed in a volcano . The man-made structure 'erupts ' every day , offering a cascading waterfall display much to the delight of guests . Located as part of the 300,000-acre Huilo Huilo Biological Reserve , home to the world 's smallest Pudu deer .