Where to Stay in Cusco Peru: My Complete Guide for First-Timers (In 2025)

Last Updated on April 5, 2025 by Oliver

Before this most recent trip to Peru, Carae and I had already been to Cusco once before. On both visits—first in 2022 and then again in 2025—we made sure to stay at least a week, the first time almost two. That gave us plenty of time to explore different areas, try a ridiculous number of restaurants, and really get a feel for the city beyond just using it as a stop before Machu Picchu and the Inca Trail.

I feel like I say this in every single article I write about Cusco, but it’s true—this is my favorite city in Peru. The location is stunning, surrounded by mountains. The colonial architecture is beautiful. The history and culture are fascinating. And the food? Honestly, that alone is enough reason to keep coming back.

Around Cusco, you’ll find many amazing sights like the Rainbow Mountain and Sacred Valley, as well as smaller, lesser-known ruins and hikes.

After spending another full week in Cusco recently, we’ve put together a bunch of articles and guides covering different aspects of the city—because Cusco deserves way more attention than just being the gateway to Machu Picchu. And this one is all about the best areas to stay in Cusco.

The point of this intro is partly to remind you how much I love this city, but also to say: if you can, spend more time in Cusco than you think you need. You won’t regret it.

In this guide, we’ll share our personal experience of spending an extended time in Cusco—exploring, wandering around, and trying out different hotels and neighborhoods. Our goal is to give you honest recommendations and tips on the best places to stay in this beautiful city.

My intention is that by the end of this guide, you’ll have a clear idea of which neighborhoods are worth considering, the top hotels to check out, and everything you need to know to decide where to stay in Cusco.

Where to Stay in Cusco: My Complete Guide (aka the Quick Answer)

I’ve been to Cusco a couple of times, and even though I already know where I’d stay again, I still like to poke around online and see what other people recommend. And let me tell you—some guides throw out five or more neighborhoods which I think is just way too many. I get the whole “giving people options” thing, but honestly, some of these recommendations are just not necessary.

I already know where 95% of you will want to stay—and should stay—because there is absolutely no reason to stay 20 minutes outside the city center just for a “more local experience.” If that’s your thing, cool, but for the majority of travelers—whether you’re here to hike, explore, or just relax—Cusco’s Historic Center is where you want to be.

This section is for those of you who clicked on this article and immediately thought, I am not reading a 20-minute breakdown just to find a hotel recommendation. And you know what? Fair. So here’s the short version of what I’ll be covering in this guide.

• The Historic Center is Cusco’s main attraction. It’s not literally the center of the city, but if you haven’t seen the rest of Cusco, you’d never know that. It’s got all the good stuff—cobblestone streets, stunning colonial buildings, great restaurants, and solid hotel options. It’s where I’ve stayed before and where I’d stay again in a heartbeat.
  If you’re on a budget, go for Pariwana Hostel. It’s cozy, affordable, and has the kind of social atmosphere you want from a hostel—without feeling like you’re trapped in a frat house. If you’re after something a little nicer, I booked El Balcón for two nights on my last trip, and let me tell you—obsessed. It’s got this rustic, authentic charm, and it felt way more special than just another hotel.

• San Blas: Technically, it’s still in the Historic Center (which is why I keep saying you can just stay anywhere in the center and call it a day). But San Blas has its own thing going on. It’s artsy, a little boho, and a lot quieter than the main square. I stayed here for a few nights at Amaru Colonial, and I really liked it. The staff was so friendly, the whole vibe was warm and welcoming, and the views were amazing. If you want to stay close to the action but not in the middle of it, this is a great choice.

• If you’re the kind of person who wants to be right in the thick of things, Plaza de Armas is your spot. This is the main square—so, yes, it’s crowded, but if you want to step outside and immediately be surrounded by restaurants, bars, and Cusco’s best sights, this is where you should book.
  I spent my last two nights at Hotel Plaza de Armas Cusco, which had killer views and a fantastic location. The rooms were clean, comfy, and spacious, though they did feel a bit basic. If you’re staying a little further from the main square, you can probably find something with more personality for the same price, but honestly? I still had a great time here.

At the end of the day, it really doesn’t matter exactly where you stay—as long as you stick to the Historic Center or as close to it as possible. Stay in one of these areas, and you’ll be walking distance from everything that makes Cusco magical—without having to deal with taxis, long walks back to your hotel, or feeling like you’re staying in the outskirts of town for no reason.

And a quick PSA: You’re gonna see a ton of hotels listed outside the Historic Center, and I strongly advise against booking them. Not because they’re unsafe (they’re not), but because they’re inconvenient and—let’s be real—not as pretty. You came all the way to Cusco, so you might as well stay somewhere that actually feels like Cusco.

Where We Stayed in Cusco, Peru

Now that we’re getting into the details of where to stay in Cusco, I want to start with my own experience—the hotels I stayed at, the neighborhoods I explored, and what I actually thought of them.

Since my most recent trip was this year and my previous one was only a few years ago, I’ll include my experiences from both. But I’ll focus more on my latest trip because, well, my memory of 2022 is already getting a little fuzzy.

Back in 2022, I was a full-on backpacker. Dorm rooms, shared bathrooms, the whole deal. These days, that’s not my vibe anymore, but back then, I loved it. It was cheap, social, and exactly what I needed at the time. For almost my entire stay, I booked a bed at Pariwana Hostel, which is right in the historic center close to San Pedro Market and just a five-minute walk from Plaza de Armas.

Pariwana is definitely one of the better hostels I’ve stayed at in Peru. It’s not a party hostel, but it does have a little bar—perfect for grabbing a drink before bed or a snack when you don’t feel like heading out. The hostel is set in a colonial-style building, which gives it some extra charm, and there’s a cute little courtyard where you can hang out. I also booked a bunch of my tours through them, and the front desk staff were super helpful. They even let you store your luggage if you’re heading to Machu Picchu or doing a multi-day trek, which is a lifesaver. Double thumbs up from me for Pariwana.

Fast-forward three years, and I’m back in Cusco—not backpacking, which automatically means a slightly higher budget (love that for me). That also means no more hostels, but instead, boutique hotels and homestays.

For my first stop, I stayed at El Balcón, which is a little further from Plaza de Armas but still within the historic center. I really enjoyed it because the building was just so pretty—old colonial-style with little terraces everywhere and great views. The rooms were simple but well-decorated, so it actually felt like I was in Cusco. You know when you stay somewhere that’s just a generic modern hotel room, and it kind of kills the vibe? Yeah, this wasn’t that. Staying somewhere with a bit of character is something I really appreciate in Cusco.

After that, I moved over to Amaru Colonial, which is in San Blas—one of the best neighborhoods to stay in. We walked there, which took a while (perks of traveling carry-on only), but along the way, we passed a ton of little galleries and boutique shops, which is exactly what San Blas is known for. The hotel itself felt similar to El Balcón, with beautiful views and that authentic, historic charm, but in a very high-quality way.

It’s a solid three-star hotel that feels better than that. One morning, we had breakfast there, which was a small but freshly made Western-style buffet. Nothing fancy, but it had everything we needed—a solid start to the day.

For my last night, I wanted to stay somewhere more central, so I booked a room at Hotel Plaza de Armas Cusco—which, as the name suggests, is literally in the middle of everything. If you want to be just steps away from all the bars, restaurants, and shops, this is where you want to be.

Personally, I don’t mind staying a little further out and walking everywhere, but I can see why some of you would prefer being right in the center. The hotel itself was great—the staff were super attentive, everything was spotless, and the location couldn’t have been better. The only thing was that the interior felt a little basic. Not bad, just not super exciting. But overall, I had a really good stay.

So, that was my experience with hotels in Cusco. Each place had its own perks, and I honestly think any of these would be a great choice depending on your budget and what kind of vibe you’re looking for.

My TOP 3 Neighborhoods in Cusco Peru

I didn’t want to overcomplicate things with a bunch of different neighborhood names—especially when most of them are pretty close to each other anyway. So I kept it simple. In the sections below, I’ll walk you through my favorite areas in Cusco and exactly where I think it’s worth staying.

Historic Center: Busy, Beautiful, and Exactly Where You Want to Be

The Historic Center is the heart of Cusco—the whole area around Plaza de Armas, up through San Blas, and even stretching toward Cristo Blanco. And I honestly think that you can’t really go wrong here.I’ve stayed in this area every time I’ve been in Cusco, and this is where you get the full experience. cobblestone streets, colonial buildings, and an atmosphere that actually feels like Cusco. It’s also ridiculously walkable. You can roll out of bed and be at a cute café, a lively bar, or some Incan ruins within minutes.

Another thing I haven’t mentioned yet is that it’s super safe. I’ve walked around here late at night and never felt uneasy. Sure, there are the usual touristy crowds, but the vibes are great, and you’ll never struggle to find a place to eat, drink, or just wander aimlessly through narrow streets that look like they belong in a movie.

✅ Pros of Staying in the Historic Center

• Everything is right at your doorstep—walk everywhere, no taxis needed.
• The best restaurants, bars, and cafés are all around you.
• It’s the most beautiful part of Cusco—this is what you came here to see.

❌ Cons of Staying in the Historic Center

• It’s definitely more expensive than other areas.
• Can get crowded, especially around Plaza de Armas.
• A bit louder, especially if you’re near the nightlife spots.

If you don’t mind the extra liveliness and want to be in the middle of everything, the Historic Center is where you want to stay. It’s where I always book, and I’d do it again in a heartbeat.

Best Places to Stay in the Historic Center

Pariwana Hostel

This is also Where to Stay in Cusco for Machu Picchu (They’ll keep your luggage while you’re visiting Machu Picchu)

If you’re backpacking through Peru, traveling on a budget, or just love a good social vibe while you travel—Pariwana Hostel is a total win. It’s only a 5-minute walk from Plaza de Armas, and the dorms are actually comfy (which isn’t always a given). I stayed here during my backpacker days and honestly had such a good experience. The building is a charming colonial-style spot with a cute little courtyard, there’s a chill bar for your end-of-day drinks, and they helped me book a bunch of tours too. Oh, and I met some amazing people here—which is really what it’s all about when you’re traveling that way.

Hotel Monasterio San Pedro

Moving up the comfort ladder a bit, Hotel Monasterio San Pedro is a great midrange option with rooms starting around $100. As the name suggests, the hotel is inside a former monastery (very Cusco, right?), and it still has this beautiful peaceful garden in the courtyard that makes it feel like a little oasis. The rooms are cozy and always spotless, and the whole place just has a warm, slightly old-school feel to it. It’s not flashy, but it’s super solid—and you’re still right in the middle of everything.

Palacio del Inka

If you’re in the mood to splurge or celebrating something special, Palacio del Inka is definitely one of the most luxurious hotels in Cusco. This place is next-level. The property itself is stunning—an old Spanish colonial mansion with all the elegant details—and inside you’ll find a full spa, hot tubs, massages, and a fantastic restaurant that serves top-notch food. You’re also right in the historic center, so it’s central and gorgeous. If you’re on your honeymoon or doing a treat-yourself kind of trip, this is the spot.

San Blas: A Cute, Hip Neighborhood with Major Charm

San Blas is for sure one of my favorite areas in Cusco. It’s a little uphill from the Historic Center (yes, your legs will feel it), but it’s got such a cool, artsy vibe that makes it totally worth it. Small cobblestone streets, boutique shops, local art galleries, and cozy little cafés where you can sit with a coffee and pretend you live here. I stayed in San Blas on my most recent trip, and I loved it—it felt a bit quieter and more local, but still close enough to all the action.

The main square, Plaza San Blas, is surrounded by cute restaurants and bars, and the whole area has a creative feel to it. It’s also home to some of the best views in Cusco. A lot of hotels and guesthouses here have little terraces where you can sit with a cup of coca tea and look out over the city. Absolute bliss.

That said, there are two things to keep in mind. One: the uphill walk. If you’re carrying luggage, you will feel every single step. Two: it’s quieter at night—great if you want a break from the crowds, but if you’re looking for a super lively nightlife scene, you might prefer to stay closer to Plaza de Armas.

✅ Pros of Staying in San Blas

• Super charming, artsy, and full of character.
• Amazing boutique shops, galleries, and cafés.
• Some of the best views over Cusco.
• Still walkable to the Historic Center but with a more local feel.

❌ Cons of Staying in San Blas

• That uphill walk is no joke—pack light or prepare to get a workout.
• Quieter at night, which might not be ideal if you want to be in the middle of the action.

If you’re into cool neighborhoods with personality and don’t mind a bit of a climb, San Blas is a fantastic place to stay. I loved it, and if I go back, I’d absolutely stay here again.

Best Places to Stay in San Blas

Hostal & Apartments El Triunfo

Let’s start things off with my budget-friendly pick: Hostal El Triunfo. It’s a fairly simple spot—nothing too fancy—but the staff are incredibly kind and helpful, and sometimes that makes all the difference. The best part is that they have apartments with a full kitchen, which I’m always a fan of when I’m staying somewhere a bit longer. I don’t always need an apartment, but when I do, it’s usually because I want to make my own breakfast, stock the fridge with snacks and drinks, and take a break from eating out 3x a day. Having a little kitchen setup like the ones here makes the stay feel a bit more like home, in the best way.

Tika Wasi Casa Boutique

If you’re after something a bit more stylish, Tika Wasi Boutique is a beautiful option in San Blas. Like most Cusco hotels, it’s not ultra-fancy, but it’s full of charm—think colorful, cozy rooms with traditional touches and great attention to detail. The rooms come with a private bathroom and the hotel has a buffet breakfast. The vibe here is super relaxed, and the staff are lovely. But the real highlight to me was the courtyard with hammocks and the views. It’s the perfect spot to relax in the sun after a day of wandering around San Blas. Definitely a great pick if you want something midrange that still feels special.

Plaza de Armas: The Heart of Cusco

Plaza de Armas is the absolute center of Cusco—everything happens here. It’s the main square, surrounded by stunning colonial buildings, grand cathedrals, and some of the city’s best restaurants and cafés. If you want to step out of your hotel and be right in the middle of the action, this is the place to stay.

I spent my last night in Cusco at a hotel right on the Plaza, and let me tell you, the convenience was unbeatable. I could walk to all the best restaurants in minutes, grab coffee with a view of the cathedral, and stumble back home after a pisco sour or two (no uphill climb required). Plus, being in the most central part of the city means you’re never far from anything—tours leave from here, taxis are easy to grab, and there’s always something going on.

That said, staying this central comes with a couple of trade-offs. Plaza de Armas is busy. Like, all the time. It’s where everyone gathers, so expect crowds, street performers, and the occasional touristy chaos. It can also be a little pricier compared to other areas, but if you want to be right in the middle of everything, it’s worth it.

✅ Pros of Staying at Plaza de Armas

• Unbeatable location—you’re in the center of everything.
• Tons of great restaurants, bars, and cafés right outside your door.
• No uphill walks to get home at night (a blessing in Cusco).
• Easy access to taxis and tour pickups.

❌ Cons of Staying at Plaza de Armas

• Can be noisy, especially in the evenings.
• More expensive than other areas.
• Always busy—if you’re looking for a quiet escape, this isn’t it.

If you love being right in the heart of things and don’t mind a bit of hustle and bustle, staying at Plaza de Armas is a fantastic choice. I loved the convenience, but personally, I prefer being just a little further out where it’s quieter.

Best Places to Stay in Plaza de Armas

El Virrey Boutique

This might actually be my favorite hotel right in the heart of Cusco. I haven’t stayed here myself, but some friends did on our last trip, and they couldn’t stop raving about it. The rooms are big, super clean, and the staff at the front desk were apparently some of the friendliest they’d come across in a long time. And then, of course, there’s the location—right on the square. Some of the suites even have little balconies looking out over Plaza de Armas, which honestly feels like the dream. If you want to be right in the middle of everything, El Virrey is a really good option.

La Casona Real Cusco

Another great option, just steps away from the main square but tucked slightly away from the noise, is La Casona Real Cusco. The building has that classic Cusco vibe I really love—rooms surrounding a Spanish-style courtyard, which always makes the place feel more peaceful and charming than you’d expect from the outside. That’s something I’ve noticed a lot in Cusco: from the street, it’s just a big gate or wall, but then you step inside and there’s this hidden oasis. La Casona Real nails that contrast. It’s got the charm, the location, and just a really lovely atmosphere overall.

FAQs About Where to Stay in Cusco Peru

What are the best places to stay in Cusco?

The Historic Center is the most popular and practical spot to stay, especially around Plaza de Armas and San Blas. You’re close to everything, it’s safe, and there are tons of great hotels and hostels in walking distance.

What are your Cusco hotel recommendations?

I loved staying at El Balcón and Amaru Colonial for boutique vibes, and Pariwana Hostel was great back when I was backpacking. For something fancier, Palacio del Inka is the top luxury option I’d go for.

What are the best neighborhoods in Cusco? ( What area to Stay in Cusco )

The Historic Center (including San Blas and Plaza de Armas) is where I’d stay every time. San Blas is more artsy and low-key, while Plaza de Armas is busier but super central.

What are the best 5-star hotels in Cusco?

Palacio del Inka is definitely one of the best. If you’re celebrating something or just feel like treating yourself, this place has it all—spa, fine dining, beautiful rooms, and that classic colonial architecture.

What to do in Cusco?

Cusco has so much to offer beyond just being the gateway to Machu Picchu. Explore the San Blas neighborhood, visit the Qorikancha temple, wander through the Sacred Valley, take a day trip to Rainbow Mountain, or just enjoy the food and coffee scene. It’s one of those places where simply walking around feels like an activity.

Final Thoughts on The Best Places to Stay in Cusco Peru

Cusco is one of those cities where where you stay can really shape your experience. I’ve done the dorm room thing, the boutique hotel thing, and the stay-right-on-the-square thing—and honestly, each one had its charm. Whether you’re here for Machu Picchu, the food, the history, or just the mountain air, there’s a perfect spot in Cusco for you.

I hope you know that this guide on accommodation in Cusco is based entirely on my own experience, and I wouldn’t recommend anything I don’t truly believe in. My intention is to help you have a great time in Cusco and choose the right place for your stay. Enjoy, and I hope you’ll love Cusco as much as I did!

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