Cusco & Machu Picchu Travel Guide
Where to Stay in Cusco and the Sacred Valley
How to split your nights between Cusco's historic center and San Blas, the Sacred Valley towns of Pisac, Urubamba and Ollantaytambo, and Aguas Calientes at the foot of Machu Picchu, with hotel picks at every budget.
The most important decision about where to stay in this region is not which hotel but which places, and in what order. A trip to Cusco and Machu Picchu usually involves three bases: Cusco itself, the Sacred Valley, and Aguas Calientes, the town at the foot of Machu Picchu. How you divide your nights between them affects how you cope with altitude, how much time you spend in transit and how relaxed your Machu Picchu day will be.
The smart order. Many experienced planners suggest starting low and finishing high: fly into Cusco, go straight down to the Sacred Valley for two or three nights to acclimatize, take the train from Ollantaytambo to Aguas Calientes, spend a night there before your Machu Picchu entry, then return to Cusco for the final days, by which time the altitude feels easier. The alternative, starting in Cusco, works well if you take the first day very easy. Either way, try not to visit Machu Picchu as a rushed day trip from Cusco: it involves a very early start, at least seven or eight hours of travel and an early entry slot you may struggle to make.
Cusco: the historic center. The streets around the Plaza de Armas hold most of the sights, restaurants and hotels, and staying here means you can walk everywhere, return to your room for a rest in the afternoon and enjoy the plaza lit up at night. It is also lively and, in places, noisy. For a luxury stay, Belmond Palacio Nazarenas, an all-suite former convent on the quiet Plaza Nazarenas with oxygen-enriched suites and a heated outdoor pool, is the standout. The JW Marriott El Convento Cusco, built into a sixteenth-century Augustinian convent near Qorikancha with Inca remains on display, offers international comfort, big rooms, an indoor pool and loyalty points. Both are within five minutes of the Plaza de Armas on streets taxis can reach.
Cusco: San Blas. The hillside artisan quarter just above the plaza is the most charming place to stay in the city, with colonial houses turned into boutique hotels and guesthouses, terraces with views over the rooftops, and lanes of workshops, cafes and small restaurants. The trade-off is the climb: the streets are steep stairways, many are not reachable by car, and the walk back up after dinner is hard work at altitude. Casa San Blas, a restored colonial house with a sunny terrace and friendly staff, is a good-value boutique choice. If stairs worry you, look for hotels on the lower streets near the twelve-angled stone or around Plaza Nazarenas.
Cusco: other areas. Avenida El Sol and the streets south of the center toward the San Pedro Market have more modern mid-range hotels, flatter streets and easy taxi access, but less atmosphere. San Cristobal, above the plaza, has views and some guesthouses, but involves another steep climb. Wherever you stay, check whether rooms have heating, as Cusco nights are cold year-round, and ask whether the hotel offers oxygen if you are worried about altitude.
The Sacred Valley. The valley is lower, warmer and quieter than Cusco, and a lovely place to slow down. Pisac, at the eastern end, is a market town with a bohemian, wellness-focused scene and simple, characterful guesthouses; Pisac Inn, on the edge of the main square with its own Cuchara de Palo restaurant and private excursions, is a friendly budget base. Urubamba, in the middle of the valley, is a practical town surrounded by countryside lodges and resorts; Explora Valle Sagrado, an all-inclusive lodge among corn fields with daily guided hikes and bike rides, is the choice for active travelers who want everything organized. Ollantaytambo, at the western end, is a living Inca town with small hotels and the main station for trains to Machu Picchu, which makes it the perfect last stop before the train. Many travelers combine two valley bases, for example Pisac then Ollantaytambo.
Aguas Calientes. Officially Machu Picchu Pueblo, Aguas Calientes is a small, cramped town squeezed into a gorge around the railway, full of hotels, restaurants and souvenir stalls, with hot springs and the shuttle buses up to the citadel. Staying at least one night here lets you take an early entry to Machu Picchu and avoid the stress of a same-day train. Most hotels are basic, so it is worth choosing well. Inkaterra Machu Picchu Pueblo Hotel, an eco-hotel of stone casitas in a private cloud forest with orchid and bird walks led by naturalists, is the most memorable stay. Sumaq Machu Picchu Hotel, a five-star hotel on the riverside with a strong Peruvian restaurant and a spa, is the comfortable, full-service alternative. Both are a short walk from the station and the bus stop.
By budget. Luxury travelers can combine Palacio Nazarenas in Cusco, Explora in the valley and Inkaterra or Sumaq at Machu Picchu. Mid-range travelers might choose a San Blas boutique hotel, a small hotel in Ollantaytambo and a mid-range hotel in Aguas Calientes. Budget travelers will find guesthouses and hostels in every town, with Pisac Inn a good example in the valley. Prices peak from May to September and at festivals such as Inti Raymi in June; the rainy season from November brings better availability and rates.
Practical tips. Book Machu Picchu tickets first, then trains, then hotels around them. Train luggage is limited to a small bag, so ask your Cusco or valley hotel to store your main luggage while you go to Aguas Calientes. Let hotels know your arrival time so someone can meet your taxi, especially in San Blas. And check what is included: some valley and Aguas Calientes hotels include meals, guides or transfers in their rates.