Machu Picchu
Tacna
Hotel Machu Picchu Avenida Tacna, two blocks from the Plaza de Armas, is a good deal. Rooms cost 30 soles per night but have hot water, cable tv, and large comfortable beds. Like many hotels near the Plaza, caution should be exercised when walking around at night.
La Arboleda
Hotel La Arboleda, Independencia 165. Basic and fairly clean hotel with friendly staff. The neighboorhood is dangerous at night. A single with shared bathroom cost 10 soles.
The Las Dunas Hotel, a complete resort, is the most expensive and most respected hotel in the area. It is in just 10 minutes away from downtown. Rooms cost between $80 and $200 per night.