If you do an overnight tour of the Colca Canyon, you will stay in Chivay, a small Andean town that sees its fair share of tourists. It's nice enough for a stroll around but the general feel is that of a tourist town and all the restaurants seem to have the same exact menu/prices.
Unique Quality: The room we had was very nice and clean with its own bathroom, actually one of the nicer rooms on the trip. It was included in the price of the tour but it seems that double rooms with bath are less than $10 and breakfast was included though not exactly ample. The best part of the town was the hot springs. Though not a natural setting, the warm water combined with the chilly night air was relaxing after a long day in the bus.
Directions: It was just off the main square and unless you do the canyon independently, the actual place will be selected for you.
We've found that other people looking for this hotel also know it by these names:
Address: Huayna Capac s/n Chivay, Chivay, 00000, Peru