Cusco (Cuzco), a colonial city that used to be the capital of the Inca empire, is filled with beautiful cobble-stoned streets, cute alpaca on the streets, and amazing Peruvian gastronomy. Not only is the city one of the places you must visit in Peru, but Cusco itself is a good place to visit all the attractions nearby. Rainbow Mountain, Macchu Picchu, Sacred Valley, these are just some of the places you can visit from Cusco.

Due to its popularity with tourists, there are so many different accommodations in Cusco. Selecting the best place to stay in Cusco from the hundreds of choices is quite a challenging task. Luxury hotel, hostels, bed and breakfast, boutique hotels, what do you pick?

Don’t worry! In this guide, we will help you decide where to stay in Cusco to make sure you have the perfect visit to this UNESCO Heritage Site

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Our favorite neighborhood in Cusco is San Blas!

San Blas is a neighborhood immediately north of the Plaza de Armas, or the Main Square of Cusco. Though still considered as part of the historic center, San Blas is concentrated with some of the best things to do in Cusco.

A beautiful and colonial area filled with artisan crafts and traditional Peruvian restaurants, San Blas is undoubtedly one of the best places to stay in Cusco. The whole neighborhood is filled with Inca architecture and artifacts such as the twelve-angled stone.

This is one of the most tourist-friendly neighborhoods in Cusco. As a result, there are some of the best hostels and hotels in Cusco in this neighborhood.

Best Place to Stay in Cusco, Peru

Cusco is one of the most popular tourist destinations in Peru. Consequently, many travelers believe that there are many different neighborhoods to stay in Cusco.

That is not true.

Most hotels and hostels are near Plaza de Armas, or the Main Square of Cusco. This entire area is called the historic center, or Centro Historico in Spanish, and it is the best place to stay in Cusco. Restaurants, the Cusco Cathedral, souvenir stores, and tour agencies (for Machu Picchu, Rainbow Mountain, Sacred Valley, etc) are all located in the historic center. 

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Any accommodation in the historic center is a good place to stay in Cusco. The entire neighborhood is very walkable and you can go from one end to the other end in 20 minutes.

There is a sub-neighborhood in the north and northwest parts of the historic center called San Blas. San Blas is a historical area filled with handicrafts, Peruvian souvenirs such as alpaca clothing, and restaurants with amazing Peruvian cuisine. 

Known for its hippie culture and artistic vibes, travelers interested can stay in San Blas. It is not particularly important to stay in the San Blas area because you can simply walk to it in less than 15 minutes.  

Best Hotels in Cusco, Peru

Selecting the right hotel for your Cusco trip might be daunting because of the countless number of hotels in Cusco. Not only that, the language barrier and the high altitude (3399m) are obstacles that you will inevitably encounter on your visit to Cusco.

The typical hotels that are amazing for your normal trips are no longer suitable. You need an accommodation in Cusco that is accustomed to the problems tourists face in this new foreign land.

You might suffer altitude sickness in Cusco due to its high altitude (most do), so your Cusco hotel needs to be able to provide oxygen support. The staff in the hotel should be able to tell you the best things to do in Cusco and the most economical way to go about those activities. It should recommend local Peruvian dishes to try, but also not try to scam you because you are a tourist.

Just having big spacious rooms with comfortable beds, luxurious decorations, and free high-speed wifi is no longer sufficient. Below we have listed our favorite hotels in Cusco that will make your visit perfect! 

Best 5-Star Hotels in Cusco, Peru

JW Marriott El Convento is one of the best 5-star hotels in Cusco. Come and enjoy the beautiful and ancient courtyard and play with the baby alpaca Panchita. Stay in one of the oxygen-enriched rooms with real historic Inca walls. The hotel itself feels like its own lost city inside Cusco, a relic of the past. The staff is happy to assist you with anything including planning your trip to Machu Picchu.

If you don’t feel so well after hiking in the Andes, visiting Machu Picchu, or for any altitude-related sickness, the hotel offers free oxygen treatment that will make you feel better. After the oxygen treatment, relax in their indoor relaxation pool or their spa. Their breakfast buffet is filled with international and Peruvian delicacies and is the perfect way to start your sightseeing in Cusco.

The personalized attention you get from this hotel makes it feel like a 5-star home, not a hotel.

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One of the best 5-star Cusco hotels with oxygen, Palacio del Inka is located in a historic Inca site. The hotel is named Palacio del Inka because it used to be a palace for the Inca.

Daily tours of the hotel are offered to explain the significance and the history of the Inca. Lessons for Pisco sour, the national drink of Peru, are also offered daily. 

The hotel is one of the few hotels with a gym, perfect for travelers who need a little bit of training before doing the Inca Trail, Salkantay Trek, or any other hikes to Machu Picchu.

Travelers that have not adapted to the altitude of Cusco can visit the adjacent Qorikancha, the most important temple in the Inca Empire.

The staff is attentive and will personally go above and beyond to make sure you have a good time in the hotel and outside the hotel in Cusco.

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Was it ever your dream to stay in a monastery? Well here is your chance. Belmond Hotel Monasterio is a beautifully restored 15th-century monastery. Most of the design of the monastery has been kept the way it was, as visible by the beautiful courtyard and architecture. It is an attraction in Cusco on its own

The experience of staying in this hotel is a bucket list item in Peru. If you are not sure where to stay in Cusco and want a unique accommodation, consider staying at Belmond Hotel Monasterio.

This 5-star hotel also has one of the best breakfast buffets in Cusco. Their oxygen-enriched rooms can help anyone suffering from altitude sickness. This 5-star hotel is a great base for all the activities you will be doing in Cusco.

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Best Cheap Hotels in Cusco, Peru

If you want to stay in a monastery but don’t want to spend big money on the hotel? Consider Hotel Monasterio San Pedro. Located across the local market San Pedro, you can eat local Peruvian food, shop for alpaca souvenirs, and observe Peruvian culture just right across the street.

As a restored monastery, the hotel has one of the most beautiful courtyards in Cusco. It is the perfect place to relax after a day of exploring the Cusco or visiting Machu Picchu.

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Hosteria de Anita is a small cheap hotel located in the San Blas neighborhood of Cusco. Many of the famous attractions such as the twelve-angled rock, Plaza de Armas, and Cusco Cathedral are just within a 10-minute walk. With affordable and spacious rooms, an amazing breakfast buffet, and a cute courtyard to relax, guests will surely fall in love with this economical hotel. 

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Not only is Los Aticos B&B a cheap accommodation, but it is also one of Cusco’s best bed and breakfast establishments. Located close to the main square Plaza de Armas, guests can enjoy the convenience of visiting Cusco’s best attractions. This bed and breakfast is situated in a small alley with just foot traffic, so guests can rest in peace and quiet, something that is rare so close to the historic center.

The buffet breakfast, big spacious rooms, and the friendly staff working at the 24-hour reception make this cheap bed and breakfast one of my favorite places to stay in Cusco!

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Best Hostels in Cusco, Peru

Cusco is one of the top destinations for travelers backpacking Peru. As a result, there are over hundreds of hostels in just the historic center of Cusco. 

With so many hostels to pick from, it might be difficult to which one is the best hostel in Cusco for you. 

Are you looking for a party hostel? A capsule-style bed hostel? Or are you looking for a quiet hostel? 

For me, I prefer a hostel that is social. A little bit of partying is fine but it should by no means disturb anyone that wants to sleep. The beds must be comfortable and the rooms cannot be too crowded. Hot water is a plus (Many cheap accommodations don’t have that in Cusco). And most importantly, it should be an affordable hostel.

Based on those criteria, I have selected what I believe are some of the best hostels in Cusco. 

Best Party Hostels in Cusco, Peru

Wild Rover is one of the most famous party hostels in Cusco. With many other locations in Peru such as Mancora, Huacachina Oasis, and more, Wild Rover hostel knows how to throw a party. Every local knows that if you want to have a wild night, you go to Wild Rover. The only downside of Wild Rover is that it is a little far from the main square and you won’t be getting a lot of sleep with the noise!

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Cusco has two famous party hostels, the first one is Wild Rover as we mentioned above, and the second one is Loki. Both are them are battling each other for the title of the best party hostel in Cusco. Luckily for travelers having a difficult time deciding which one of the two to stay in, the two hostels are right next to each other.

Loki, similar to Wild Rover, has locations throughout Peru as well. And similar to Wild Rover, don’t expect lots of sleep but do expect an amazing social hostel full of partying.

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Best Cheap Hostels in Cusco, Peru

Blacky Hostel is one of my favorite hostels in Cusco, Peru. Not only is it one of the cheapest hostels in Cusco, but it is also comfortable and social. The staff is friendly and offers tours to many of the best attractions in Cusco such as Machu Pichu and Rainbow Mountain at a cheaper price than more tour agencies. The common areas have a very homey atmosphere and it is very easy to make friends there!

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The Point Hostels is a high-quality cheap hostel in Cusco, Peru. A social hostel with amazing activities to help you meet fellow travelers, you will never spend a day alone in The Point Hostel. They do have a bar and a common area that tend to get a little rowdy at night, but you will never hear the noise from the rooms. It is a perfect combination of good rest and social atmosphere.

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Best Overall Hostels in Cusco, Peru

Closely located to the best sights, Nao Victoria is one of the best places to stay in Cusco. The main square Plaza de Armas is located a few minutes away. Though its location is amazing, it isn’t even close to Nao Victoria’s best features.

The hostel’s stylish and modern decoration along with its cleanliness makes it feel like a hotel more than a hostel. Each dormitory bed is equipped with individual lights, a curtain, and an electric socket. The staff becomes your best friend on your arrival day and helps you with your visit to Cusco, including information about Machu Picchu. This is one of the best hostels in Cusco. 

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Pariwana Hostel is a jack-of-all-trade hostel. A social hostel with some partying but yet clean and comfortable for travelers looking to rest, it is a hostel that will satisfy most traveler’s needs. The reception also has a tour agency that will provide information about the various things to do in Cusco.

My favorite part is definitely the rare spacious rooms in a hostel. Most hostels tend to jam as many beds in a room as possible, but not at Pariwana Hostel. If you are looking for a hostel and are not sure where to stay in Cusco, Pariwana Hostel is a top choice. 

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Best Boutique Hotels in Cusco, Peru

Staying in a boutique hotel is becoming more and more popular with travelers. The small-sized hotels often time give more personalized services than other large hotels. The atmosphere is more intimate and more often than not the boutique hotel feels like a second home. Boutique hotels are usually more economical than regular hotels.

Here are some of the best boutique hotels in Cusco, Peru. 

Tariq Hotel Boutique is a cute little hotel located in the bohemian neighborhood of San Blas. The rooms are some of the best-decorated rooms I have seen in all of my travels in South America. Each room has a big beautiful window overlooking the entire city of Cusco. No need to hike to the top of Saqsaywaman to get a panoramic view of Cusco, you have it in your room at all times. 

Everything about this boutique hotel in Cusco is just gorgeous. If you are all about the aesthetics of a hotel, Tariq Hotel Boutique is the hotel for you.

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Located in a refurbished Inca building, many of the rooms in the Loreto Boutique Hotel have historic Inca walls. The rooms are very spacious and you will have plenty of room to put your luggage. The staff is extra friendly and will assist in with anything you need inside and outside the hotel. My friend was looking for a camera bag and a member of the staff escorted us to the shops! 

Situated adjacent to Plaza de Armas and walking distance to San Blas neighborhood and the San Pedro local market, this hotel is the perfect base for exploring Cusco.

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Casa Montesinos Boutique is a hotel that feels like a mansion. Beautiful decor in an old historic building, vintage vibes with every little detail, and a balcony that looks into the antique cobble-stoned streets of Cusco, staying here is a luxurious experience.

The staff is very friendly and gives you personalized tips to plan your activities in Cusco. They will help you rent a car if you need it to visit the Sacred Valley, Inca ruins, or the Andes.

Click here for more details!

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Deciding on where to stay in Cusco can difficult with the number of accommodations there are. Hopefully, this guide helped you decide on the best places to stay in Cusco!

Any questions? Leave a comment below!

Disclaimer: Some of the links above are affiliate links. That means if you book through the links, we will earn a small commission at no extra cost to you! The money will help run this site! Thank you 🙂

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