11 Best Hotels in Cusco and the Sacred Valley, Peru

Set in a restored, 17th-century property—on a cobblestoned street just a few blocks north of the Plaza de Armas—this elegant boutique hotel has whitewashed walls, exposed wood beams, and colorful Peruvian embroidered pillows (also available for sale in the gift shop) juxtaposed with trendy lamps and contemporary Italian furniture. Rooms are spacious, and many have balconies that overlook the well-landscaped courtyard; some have modern soaking tubs. Other amenities include down duvets, iPod docks, flat-screen TVs, and oxygen to help with altitude sickness. At the spa, a large indoor hot tub and steam room are open to all guests—great after walking the hilly streets of Cusco.

Colonial with more than a touch of class, this exclusive, 11-suite boutique casa comes complete with a manicured interior courtyard; stately sitting and dining areas; and rooms with heated floors, antique-looking but modern bathtubs, and marbled showers. Every detail inspires appreciation, from the chic furnishings to the intricately carved wooden doors, soaring stone archways, and smiling staff. The hotel captures all the charm of a 16th-century mansion while offering all the amenities of a modern world-class retreat. After a day of tromping about town, you may find yourself cozying up and settling in, but be sure to pull yourself away from your private nook long enough to enjoy afternoon tea.

A former palace and convent dating from the 18th century, Palacio Nazarenas, located just off the Plaza de Armas, is one of Cusco's most glamorous hotels, featuring spacious, locally inspired suites surrounding seven cloistered terraces. Each room is enriched with oxygen (upon request, no fee) to assist with altitude acclimatization and features a satellite TV, complimentary Wi-Fi, and an iPad preloaded with a city guide and hotel information. Deluxe suites, known as the Z Collection, include original Inca and colonial features, special views, and/or beautiful balconies. Additional luxuries on the property include Cusco's first heated outdoor pool and a sensational restaurant and bar specializing in fine regional cuisine. The authentic Andean- and Incan-inspired spa uses therapeutic, organic local ingredients like pink Andean salt, purple corn, honey, coffee, and coca leaves.

Sprawled across acres of greenery alongside the river, this retreat offers the utmost in tranquility and luxurious comfort, with riverfront views and light-filled rooms featuring cheery alpaca blankets and embroidered throw pillows, as well as natural materials that complement the surrounding landscape. The only thing better than the views and the rooms is the first-rate service. Also on-site are a heated swimming pool and a gorgeous spa that will pamper you using local products. Villas are perfect for families.

Everywhere you look, there are original pieces of art juxtaposed with modern furnishings at this luxurious boutique hotel housed in a 16th-century colonial mansion. Service is impeccable, and amenities include an intelligent oxygen system, central heating and air-conditioning, heated bathroom floors, and much more. Once you manage to get out of your bathrobe and slippers, you'll find it easy to explore, given that the hotel is right in the center of town.

Close enough to but still removed from the hubbub of the Plaza de Armas, this posh property that's part of Marriott's Luxury Collection has made the most of its gorgeous colonial past—it was the last home of Francisco Pizarro, the first governor of Peru—while upgrading its room design. The place is huge without seeming so, and has both colonial and modern wings. The colonial rooms are lush as befits the era, many with original furniture; the rooms in the modern wing all have colonial touches, and every room features central heating to keep out the chill. Stop at the plush bar for a mean pisco sour, and browse through the lobby's original art, including Escuela Cusqueña paintings.

The sprawling complex that's part of Marriott's Luxury Collection is the first hotel in Peru to achieve LEED certification—it sits on the edge of Urubamba's river with environmentally friendly rooms featuring hardwood floors and great mountain views. Service-oriented to the max, the hotel has a sophisticated restaurant and an übertrendy bar, as well as an on-site spa, pool, and fitness center. The hotel sits right across from Urubamba's rail station, making trips to Machu Picchu especially convenient.

Restoration of the landmark 1592 Monastery of San Antonio Abad—where the chapel has an ornate gold altar and Cusqueña art, and the serene cloister will take your breath away—allowed one of Cusco's top hotels to retain an austere beauty, from the elegant lounge bar to the compact rooms that blend colonial furnishings with remote-control window blinds, TVs that pop up from cabinets, and other mod-cons. For those having trouble adjusting to the altitude, the hotel offers an in-room oxygen enrichment service.

Whether you stay in the main house or your own private casita, all the guest quarters at this sprawling, 40-hectare (100-acre), sustainable estate—built to resemble the haciendas of old—have beautiful wood appointments and allow for peaceful dreams thanks to the finest beds and the dramatic views of the Sacred Valley and surrounding mountains. The restaurant creates its delicious dishes using organic ingredients from its own fields, giving you the freshest possible cuisine. Some excursions, such as farm tours and early morning bird-watching, are included.

Step through the enormous original 16th-century doorway and into the plush lobby for a feel of this property, a beautiful and comfortable blend of old and new, featuring large rooms with amenities such as oxygen pumped in on request (at an extra charge), in-room thermostats, down comforters, and king-size beds. The library has books from the 1800s to browse through, and archaeological exhibition rooms display some of the finds unearthed during the excavation and restoration of the hotel. The main restaurant has a wall from the colonial church that once made its home here, and you won't want to miss the bar's pisco sours.