Located two blocks from the Plaza de Armas, this is the best hotel in Cusco. A sensitive conversion of the 16th-century Seminary of San Antonio Abad, this former monastery has retained its original infrastructure and colonial décor but is now a 5-star international hotel boasting a gilded chapel, superb fine dining and oxygen-enriched air in every room. The therapy suite is also ideal for those returning from a long Machu Picchu trek.

Cusco's first luxury boutique hotel is located in what is probably Cusco's first Spanish construction. The colonial courtyard is surrounded by 11 sumptuous suites furnished with antiques and all mod cons imaginable. Brilliantly located for the arty San Blas district and Plaza de Armas, Inkaterra La Casona is a quiet oasis of serenity with an eco conscience.

Just moments from the Plaza de Armas, the Palacio del Inka combines utmost luxury with an Incan and Spanish twist. Expect framed dark ochre (a nod to Andean spirits), gold and burgundy furnishings that reflect the conquistador influence and original artworks. There are 203 wonderfully fitted rooms to choose from and all boast handcrafted furniture, huge beds and historical décor, along with fast internet, LED TVs and big bathtubs. The Inti Raymi Restaurant downstairs plates up remarkable Peruvian fine dining and there is a tranquil spa onsite as well.

The B&B Hostal Pension Alemana is a cosy little home from home, offering 22 basic but spotless rooms and a very warm welcome. Not far from the centre of town, this bed and breakfast has great views over the Cusco rooftops, a smart little breakfast area and a cool terraced garden. Try and get a room on the upper floor.

Built on an old Inca temple and recognisable by the giant stonework around its entrance, this elegant, older colonial house has a rooftop terrace and gardens in addition to well-equipped, stylish rooms. Three blocks from the main plaza, the Rumi Punku enjoys superb panoramic views over San Blas. There is a decent breakfast buffet too, which is served from 0500 for those up to tackle the Inca Trail.

Formerly the colonial home of the17th-century Spanish noble, the Marqués de Picoaga, this top-end hotel in Cusco close to the heart of the city makes the most of its handsome colonnaded courtyard, beautiful stone columns and elegant archways. Service is excellent and the hotel has its own bar and high-quality restaurant.

Located in vibrant, picturesque San Blas, this restored colonial mansion offers clean, welcoming bedrooms centred on a cheerful courtyard. Each room is unique but all have cable TV and some have views across Cusco. A good breakfast is included and there is Wi-Fi and a decent library of books for exchange.

This friendly, budget Cusco hotel option is set in a colonial-style building located two blocks from the Plaza de Armas. Its 16 rooms are set around an attractive interior courtyard and are basic but spacious, clean and comfortable. A safe, sociable, economical option, this hostel has a family atmosphere and is particularly popular with backpackers, especially as Wi-Fi is now available. Ask for a room away from the street. No breakfast.

Quite frankly the coolest hostel in town, Mama Simona (named after one of the mountains in the Scared Valley range) is a clean, kitschy hostel that offers private rooms and dormitories. With varnished wooden floors, comfy beds and artworks adorning the cream walls, those that stay here could quite as easily be bedding down in a New York apartment. Free Wi-Fi and a decent breakfast buffet come as standard with the odd live music night providing the ideal opportunity to make friends too.