Los Tambos Colonial
Set only three blocks from the Plaza de Armas, this 18th-century building is a gem of Arequipa's colonial architecture, with a sheltered courtyard that leads you away from Calle Mercaderes's humdrum trappings to a sumptuous lobby with a traditional rounded-pebble floor adorned with large paintings of characters from the past. The chapel-like breakfast area is right next door and offers a remarkable à la carte menu. Guest rooms are set at the back of a separate building and have modern yet simple decor, with windows facing a serene garden decorated with lounge chairs.