This was our first hotel during our stay in Cusco and is located in the San Blas neighborhood. This is where you can find many small craft shops and is also where local artists hang out (or so we were told).
The hotel is very nice, modern and stylish. Some rooms are obviously better than other, but if you are lucky, you can get a room with a nice view over the city (we got a bad view at first and then changed rooms).
Service was very good and attentive, both front desk and restaurant personnel. This is clearly one of the better hotels in Cusco.
It is only about 5-10 minutes away from the main square which can be easy to reach, except if you are having problems with the altitude as there are some stairs to climb. In any case, a taxi will cost 2 or 3 soles (day and night rate), which is less than $1.
I definitely recommend this hotel.
Unique Quality: Has free internet access, both wireless and a shared computer that can be used at any time by the guests. You will have to request a username/password valid for 30 minutes.
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Address: Calle Chihuampata no 278, San Blas, Cusco, Peru