Hostal Florida
is a good option for budget travelers. Nice views from the top rooms and they offer WiFi during the day and sporadically at other times. A matrimonial room is 50 soles with bathroom, while a single is 35 soles with private bathroom. But can be negotiated lower. Note that showers are electric - i.e., not truly hot. Note that breakfast is not included in the price despite what they may tell you over the telephone. However, some travellers report a number of items of value are stolen from their room in this hotel, and when reported, owners becoming very unpleasant.
Hotel La Crillonesa
One block from the main mercado and just a few from the plaza de armas, nazareno 165. they ask for 50 soles for a room with private bathroom and double bed, but may accept lower offers. rooftop terrace great view, cafe, cable tv in most rooms, 24hr hot water, friendly service. you may like being near the market and the bustling pedestrian-only street that goes by it.