The place to stay while exploring Cusco is Hotel Monasterio, a hotel-come-museum, set in a former monastery built in 1592. It has retained loads of original features, like the cloisters and sweeping staircases while each of the 126 rooms are different - book a junior suite if you want space as the standard rooms can be on the cosy side.
If you're feeling the effect of altitude (up to fifty% of guests do, as is lies 3000 metres above sea level!), ask for oxygen-enrichment, where oxygen is piped into your room until you acclimatise! Highlights of the hotel include dining on Peruvian cuisine in the vaulted Illariy Restaurant and sipping aperitifs - Pisco sour is the national fave - at sunset in the central courtyard overlooking a softly flowing fountain and 300-year-old cedar tree. If you want to experience the city's nightlife, head to Fallen Angel, an Alice in Wonderland-type experience, with fish tank tables, black rubber sofas and flying pigs on the ceiling.