Where to Stay in Cusco: An Insider’s Guide to Cusco Neighborhoods and Accommodations [2024]

Cusco is so much more than just the gateway to the Sacred Valley; though it is arguably the most visited destination in Peru, so much of this destination remains largely untouched by the majority of travelers who simply breeze through on their way to Machu Picchu.

From luxurious age-old mansions built out of sections of ancient Incan walls to fun, festive hostels for budget-conscious backpackers, there is a huge range of accommodation options to choose from in Cusco. Read on for the best the city has to offer, including neighborhoods and specific hotels and hostels handpicked by travel experts and locals as the very best places to stay in Cusco – on every budget.

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Best Places to Stay in Cusco

When visiting Cusco, you’ll most likely spend all of your time in the historic center of Cusco, and you’ll certainly want to stay here. This is where you’ll find a vast array of restaurants, cafes, hotels, and everything you could ever want as a traveler, plus the city’s best attractions.

Looking for our top recommendations for the best hotels in the city? Here are our top picks – they’re all located in charming and safe neighborhoods within the historic center and will provide some of the best experiences the city has to offer.

Read on for the best areas to stay in Cusco and our handpicked recommendations for Cusco neighborhoods and accommodations that will make your trip unforgettable.

Cusco Neighborhoods

While Cusco’s historic center is small, it has a few distinct neighborhoods to love, each with its own charm. Unless you’ll be sticking around for weeks instead of days, you’ll want to choose from among the following areas within the Cusco historic center when choosing where to stay in Cusco ~

• Plaza de Armas | The blocks immediately surrounding Cusco’s main square, the Plaza de Armas, are where to stay in Cusco to be in the center of the charm, history, and action. This highly walkable area gets busy but is perfectly located for easy access to everything in town.
• San Blas | San Blas in Cusco’s historic center is hands down the best place to stay in Cusco for cool cafes, great restaurants, and the best shopping. This patchwork of winding streets is popular with travelers and bursting with quaint charm.
• San Cristobal | San Cristobal is a hilly section of Cusco’s historic center that is where to stay in Cusco for stunning views and historic touches. You’ll find everything from affordable hostels to centuries-old Incan palaces turned guesthouses in San Cristobal.

Keep reading for more on each of these vibrant Cusco neighborhoods, including our top Cusco hotel recommendations in each area.

Plaza de Armas

The few blocks immediately surrounding Cusco’s central square, the Plaza de Armas, is where to stay in Cusco to be in the center of the charm, history, and action. Everything else in Cusco’s historic center radiates out from here.

Staying next to Cusco’s Plaza de Armas means being just a few steps from the best the city has to offer but also right in the middle of it all (which I loved as a visitor to Cusco, but it isn’t for everyone). Located within the plaza or just a few blocks away, you’ll find a great of the city’s most well-loved restaurants, artisan markets, and tour providers, plus the most important historic sites in town.

You’ll also find some of the city’s best accommodation options…at all price points. These are our top recommendations.

Best Places to Stay in Plaza de Armas

• La Posada del Viajero | ($) Just a block away from the Plaza de Armas, this friendly yet not overly party-centric hostel is a perfect choice for the backpacker looking to be at the center of the city’s action. Luggage storage, if you’re headed out on the Inca Trail or another Sacred Valley hike, is a big plus.
• Viajero Kokopelli Hostel Cusco | ($) This is undeniably the best hostel in Cusco. It tends to be quite social and friendly, and the guest profile skews younger. The facilities are gorgeous and spacious, really making it a memorable spot.
• Casa Andina – Cusco Plaza | ($ – $$) An affordable, modern hotel just steps from Plaza de Armas. This is one of the best value options in Cusco – we highly recommend it!
• Inkaterra La Casona | ($$$) Cusco’s first 5-star boutique hotel, set in a 16th-century manor house just steps away from Plaza de Armas. This is the counterpart of the magical Inkaterra Machu Picchu Pueblo Hotel in Aguascalientes.
• Monasterio, A Belmond Hotel | ($$$$) Set in a colonial monastery dating from 1592, Monasterio, A Belmond Hotel is a destination and historical landmark of Cusco itself. This hotel is one of the best luxury hotels in Cusco, clad with rich, thoughtful decor and home to one of the best Peruvian restaurants in the city.
• Palacio Nazareno, A Belmond Hotel | ($$$$) Original Inca stone walls and colonial details remind you this is, actually, a palace, though the exceptional service, inspired luxury decor, and butler service with every suite will never you have you questioning it.

San Blas

The Cusco neighborhood of San Blas is where to stay in Cusco for cool cafes, great restaurants, and the best shopping in town – with plenty of historic charm thrown in. Winding cobblestone streets, countless artisan shops, and important historic landmarks make it a must-visit destination, even if you’re not staying here.

San Blas centers around the lovely Iglesia de San Blas and its adjoining plaza, built upon the ruins of an Incan temple, and stretches down to nearly the Plaza de Armas. The neighborhood is home to some of the oldest buildings in the city of Cusco, as well as landmarks like the Mercado de San Blas for cheap, local food and juices, as well as the Mirador de San Blas (San Blas Viewpoint) with breathtaking vistas across the entire city.

Where To Stay in San Blas

• Hostal El Grial ($) One of the best hostels in Cusco! The largest room only holds three guests, meaning you’ll get plenty of privacy, much more than you’ll find elsewhere.
• Casona Les Pleiades | ($-$$) Simple and affordable yet cozy, homey rooms with terrace views make this boutique hotel a popular if somewhat “undiscovered” option.
• Rumi Punku | ($$) This is our top pick for the best budget-friendly hotel in Cusco. Built around portions of Incan city walls, you’ll really feel the layers of history in Cusco the second you step inside the courtyard of this comfortable boutique property.
• Tocuyeros Boutique Hotel | ($$ – $$$) A favorite mid-range boutique hotel in Cusco, where rooms are spacious and each is individually designed. The location is unmatched in San Blas.

San Cristobal 

The San Cristobal neighborhood within Cusco’s historic center is where to stay in Cusco for stunning views and historic touches. Centered around the Iglesia de San Cristobal and its adjoining plaza – which was constructed on the ruins of an Incan palace – this neighborhood boasts incredible views of the rest of the city.

If you’re looking for a more relaxed and quiet area to stay in Cusco, this is a fantastic option. You’ll just be a few minutes away from the Plaza de Armas and the rest of the attractions of the historic center – though you may want to take a taxi back up the hill afterward.

• Saqray Hostel | ($) One of our favorite hostels in Cusco for travelers looking for a relaxed, laid-back stay rather than party central. Dorms are clean and comfortable, and private rooms are affordable.
• Rumi Wasi | ($$) A lovely and affordable historic hotel where you’ll feel both the Incan and colonial history of Cusco, with charming decor and staff is attentive. Rooftop views are unforgettable.
• Palacio Manco Capac | ($$$) A 5-key property set within a 17th-century mansion built upon the ruins of an Incan palace. Palacio Manco Capac was rated one of the 25 best boutique hotels in the world, and it’s easy to see why.

Cusco Airport Hotels

The Cusco Airport (Alejandro Velasco Astete Cusco International Airport ) is only a 15-minute taxi ride from the Cusco Historic Center. Because of the proximity of the airport to the heart of the city, there aren’t really any dedicated “airport hotels” in Cusco.

However, if you’re looking to stay closer to the airport, I recommend sticking to the eastern side of the historic center. On this side of the Plaza de Armas, you’ll be closer to the main thoroughfares to get to the airport – meaning you won’t be cutting through the busiest part of the city.

Each of these hotels is a fantastic, highly recommended place to stay in its own right, regardless of being a bit closer to the airport. You’ll have a great stay in any of them regardless of how long you’re planning to stay in Cusco.