Where you sleep decides how the valley feels. Stay in Urubamba and you have a lower, warmer and more spacious base in the middle of the valley, with resorts, restaurants and quick access to Pisac, Chinchero and Moray. Stay in Ollantaytambo and you have the Inca town, the fortress and the train station on your doorstep. Sleeping in the valley rather than Cusco also means gentler altitude, quieter evenings and easier mornings.
Urubamba: space, spas and river views
Rio Sagrado, A Belmond Hotel is the splurge. It stands beside the Urubamba River with terrace rooms, garden suites and villas, a spa, a heated pool and its own station for the Hiram Bingham train. It is rural, about a five-minute drive from the plaza, so evenings are quiet. Tambo del Inka, a Luxury Collection Resort and Spa, is the other high-end choice, with indoor and outdoor pools, a thermal spa circuit, a private train service to Machu Picchu and a five-minute walk to the plaza. Both suit couples and families who want comfort.
Ollantaytambo: the walkable Inca town
Hotel Pakaritampu is the sensible mid-range pick, with garden grounds, mountain views and a free shuttle to the station, which is a three-minute walk away. It is perfect for an early train. Sauce Hotel Boutique sits right on the plaza, a few minutes from the fortress, with free breakfast, a restaurant, a garden and a winery. It suits couples who want to step straight into the lanes and see the terraces at opening time. Casa Patacalle Bed and Breakfast is the budget choice on a quiet lane, with ruin views, a generous breakfast and friendly hosts.
How to choose
If your priority is comfort, a spa and a short walk to a town, choose Tambo del Inka. If you want a riverside retreat with its own train, choose Rio Sagrado. If your plan is Machu Picchu by train and you want a calm night before it, choose Hotel Pakaritampu. If you want the best position for the fortress and the plaza, choose Sauce Hotel Boutique. If you want to save for tickets and tours, choose Casa Patacalle.
Huayllabamba: hacienda stays between the towns
Two properties sit in the quiet Huayllabamba stretch of the valley. Aranwa Sacred Valley is a large riverside hacienda resort with a pool, a spa, family suites and rooms with private hot tubs, while Inkaterra Hacienda Urubamba is a smaller, calmer garden lodge with a spa and ecotours but no pool or gym. Both are rural, so plan on a driver for day trips and book transfers ahead.Splitting your stay. Many travellers spend two nights in Urubamba and two in Ollantaytambo, which lets you cover Pisac, Chinchero, Moray and Maras from the first base and the fortress and Machu Picchu from the second. If you have only three nights, spend two in Ollantaytambo to make the Machu Picchu day easier. Moving between the two bases takes under an hour by taxi or private driver, so the switch costs little time, and it spares you a long daily drive to the far end of the valley. Leave luggage space for textiles and salt, since the markets tempt almost everyone.
Practical tips
From November the rainy season begins and runs to March, so ask about heating, pack a rain jacket and use hotel spas on wet afternoons. Book early for the dry months from June to October. Check what breakfast and transfers cost, since several properties charge extra, and confirm parking if you have a car. Carry soles for small purchases, and ask the hotel to arrange drivers, guides and train tickets in advance.

