14 Best Hotels in Cusco and the Sacred Valley, Peru

Formerly known as the Green House, this small hotel offers a quiet getaway in a gorgeous rural setting—indeed, it's the perfect place to experience nature without having to rough it, as the rooms are tastefully appointed and extremely comfortable. Between the decor, the atmosphere, and the service, you'll feel as if you're in your own country home. Breakfast is included, and a part of the ancient Camino Inca passes just right by the property. El Verde also donates 1% of revenue to reforestation and educational efforts in the Sacred Valley.

Taking its name from the spirit of the mountains, this lodge nestled under the Pinkuylluna ruins has clean, bright, and artfully furnished rooms with comfortable beds. It's also surrounded by gardens filled with flowers and hummingbirds, and it commands a delightful view of the Ollantaytambo ruins from its private grassy perch, making it well worth the five-minute meander up cobbled Inca streets from the center of town. Free breakfast commences early over a communal table and is a great spot to pick other people's brains on things to see and do.

Part of a national chain, all the Casa Andina hotels exude professionalism and are a great value, but each hotel differs in style—the San Blas branch, in a colonial house perched up on the hillside, offers great views over the city's terra-cotta rooftops. The modern and comfortable rooms are tastefully furnished with Andean touches.

This upscale option, where rates are a fraction of those at other Cusco lodgings, has two wings: the front half, which drips with colonial charm—with accommodations set around the attractive, arcaded courtyard of a 17th-century building (once the home of the Marquis of Picoaga)—and the new wing, which features modern rooms and minimalist design but is still big on comfort. The old rooftop bar has been converted into three rooms with the best views in the house.

Tucked behind a high wall, this casona from 1630 was built on Inca terraces and has been transformed into a charming boutique hotel managed by the same company behind Ollantaytambo's El Albergue. Stone walls and wooden fittings welcome guests into a quaint and lush garden that leads upstairs to the “balcón” proper—a wooden balustrade where the best rooms have balconies, all fitted with rustic-chic adobe tiles and timber beams, and offer a truly stunning view of the city nestled between the mountains. On clear days, you can sit on the balcony's benches and see Nevado Ausangate on the horizon.

Each of the three villas at this beautiful property has a fully equipped kitchen, a dining room, a fireplace, two bedrooms, and two baths, allowing for an independent stay in paradise. They are well appointed with a modern aesthetic and provide gorgeous views of the surrounding countryside. Daily housekeeping and firewood are included; you can opt to add a fully stocked refrigerator, full meal service, a car and driver, and more. Each villa houses up to six people, with a two-night minimum stay.

Just outside town, this branch of Peru's Royal Inka hotel chain and the closest lodging to the Pisac ruins, has rooms that vary in terms of design and views, with some having balconies affording vistas of the gorgeous surrounding landscape. All third-level rooms have a fireplace. With all the activities and facilities here (pool, tennis, racquetball, and more), you really never have to leave the grounds.

A massive stone door—that's what rumi punku means in Quechua—opens onto a rambling complex of balconies, patios, gardens, courtyards, terraces, fireplace, and bits of Inca wall scattered here and there linking a series of pleasantly furnished rooms that have hardwood floors and comfy beds covered with plush blankets. The top-level sauna and gym have stupendous views of the city. The Rumi Punku Superior section offers slightly larger, more lavish rooms, but everyone can enjoy lounging in the cafeteria and courtyards.

Set in a 16th-century Franciscan monastery amid the beautiful countryside of the Sacred Valley, this branch of a Peruvian chain features a cavernous dining room; guest rooms with hardwood floors, white walls, and Cusqueña paintings; and a bell tower with great views of the valley. On the main road there is another, modern, hacienda-style hotel by San Agustín, with gleaming rooms, modern services, and all the comforts you could desire.

This 1810 home of Manuel de Orihuela, once host to South American liberator Simón Bolívar, features bright, airy, and comfortable rooms arranged in blocks around four courtyards, lush with flowered gardens. The lovely views of the surrounding landscape, visible from panoramic windows, provide a peaceful getaway, while the location just 10 minutes away from the larger town of Urubamba makes it a central base for exploring the Sacred Valley. You can even stay in Bolívar's room!

Bright airy rooms, skylighted bathrooms, and mountain views characterize this growing hotel just outside of town, and the entire complex conjures feelings implied in its name: peace and light. Besides relaxation, Paz y Luz also offers organized tours and healing ceremonies. Newly added are three two-bedroom bungalows with living room, kitchen, and fireplace. Long-term rooms are available with private bathrooms and shared kitchens. The hotel doesn't have a street address, but it's easily found by following the signs around town.

On a stay at this incredibly tranquil retreat in the gorgeous Urubamba countryside, you'll have even more peace of mind knowing that your soles help fund health care and education for underprivileged children. The eight bungalows, featuring comfortable beds, luxurious bathrooms, and open fireplaces, offer secluded places for getting away from it all. The surrounding grounds are full of flowers and hummingbirds, there are plenty of places to walk, and at night you'll be able to see a sky full of stars.

This 300-year-old former monastery offers modern amenities while retaining its charm in such details as tile floors, wood ceilings, hand-carved headboards, and balconies that overlook the gardens or the terraced hillsides. The cobblestoned walkways are the perfect complement to the well-preserved colonial-era church on the grounds. A few rooms are accessible to people with disabilities, a rarity in this area, but they must be reserved in advance. The restaurant has excellent regional fare and a popular Sunday lunch buffet.