Where to Stay in Cusco: Best Accommodation Options

Cusco is Peru's ancient city. Offering proximity to the incredible Machu Picchu is a must-visit city for lovers of history, architecture, and Peruvian food.

This city, which once was the capital of the Incan Empire, is the gateway to many of Peru's most famous sights and nature trails, but it's well worth a visit in its own right with incredible history, friendly locals, and breathtaking colonial-style buildings. So fascinating is this ancient city, that the historic center is a designated UNESCO World Heritage Site.

Brimming with historical sites, Cusco is smaller and more manageable than other cities in Peru like Lima, making it the perfect spot to spend an afternoon walking around and soaking in the sights. As with many cities in South America, choosing the right areas to stay in to ensure your safety is key.

To make your decision easier, I've put together a guide to the best neighborhoods in Cusco, as well as hotels for every budget to stay in each area.

Best Neighborhoods to Stay in Cusco: An Overview

Centro Historico – The beating heart of Cusco, this historic neighborhood is home to the city's most famous sights and plenty of history to keep you busy. Plus, it's so stunning, it's actually a UNESCO World Heritage Site.

Plaza de Armas – Forming part of the Centro Historico, Plaza de Armas, also known as Plaza Mayor de Cusco, is where locals and tourists alike flock to eat and drink.

San Cristobal – Home to the breathtaking San Cristobal viewpoint, this neighborhood is slightly cheaper than the Centro Historico but still puts you within walking distance of the main sights and the popular San Blas neighborhood.

San Blas – If you're looking for chilled-out, hipster vibes, head to the San Blas neighborhood. Home to plenty of luxury hotels as well as low-cost hostels, this spot is where all the cool kids hang out.

Lucrepata – Located near San Blas but quieter and cheaper, this spot is ideal for families and couples. It's also one of the best neighborhoods to stay like a local.

Santa Ana – If you're looking to escape the crowds and enjoy a truly authentically Peruvian getaway, Santa Ana is the best spot in Cusco to find it.

1. Where to Stay in Cusco for First-Time Visitors: Centro Historico

First-time visitors to Cusco wanting to soak in the sights will be best placed in the Centro Historico (historic center), where the majority of iconic spots can be found. Walking through the streets of the historic city center is like taking a step back in time to the ancient Inca Empire, with so many ancient sights to see and incredible colonial architecture.

From strolling through the Plaza Mayor to visiting the iconic San Pedro market, there's enough to do in the Centro Historico to keep you busy for days on end. Home to the Inca Museum and the Regional Historical Museum of Cusco, find out more about the history that makes Cusco the incredible place it is today and influences Peru itself.

As with any touristic center, the historic center isn't the quietest place in the city and it's definitely not the spot to escape tourists. But if you don't mind the hustle and bustle of crowds and want to be within walking distance of everything, head to the Centro Historico for your trip.

Here's where you're most likely to find a luxury hotel, but there's accommodation on the lower end of the budget, too, including youth hostels for backpackers and cheap hotels in Cusco. Whether you're looking for a boutique hotel with an on-site restaurant or a basic BnB, there's plenty of choice when it comes to places to stay.

Best Hotels to Stay in Centro Historico

($$$) Tierra Viva Cusco

($$) Union Hotel Cusco

($) Casa Matara Boutique

Things to Do in Centro Historico

• Treat your senses at San Pedro market (and try a roasted guinea pig if you're adventurous enough)

• Stroll alongside original Inca walls at Calle Hatunrumiyoc

• Head to Plaza Mayor/Plaza de Armas and people-watch

• See Cusco Cathedral

2. Where to Stay in Cusco for Eating and Drinking: Plaza de Armas

At the heart of Peru's infinitely impressive historic center is the Plaza de Armas, also known as the Plaza Mayor de Cusco. Acting as the base for locals and tourists alike to hang out, here's where you'll find the majority of Cusco's bars and restaurants, in the city's main square.

Located slap bang in the middle of Cusco's tourist center, while it doesn't promise the glitzy, up-until-the-early-morning nightlife of Lima, there are certainly enough watering holes to keep you busy.

This vibrant square isn't just for nightlife – it's a central hub during the day. Sure, it can get a little busy with street vendors and you'll likely be approached by entrepreneurial vendors looking to make a buck (as well as plenty of baby llamas!) but it's full of life, and the perfect spot to sit with a drink and do some people-watching. Just next door you'll find one of Cusco's most impressive sights, the Cusco Cathedral, as well as the beautiful city park, Plaza Regocijo.

You'll find everyone here, from gap year backpackers to elderly locals, and this melting-pot atmosphere is what makes Plaza de Armas so wonderful. It's neither pretentious nor run down – it's the ideal spot for people of all backgrounds to converge in this stunning city.

Best Hotels to Stay in Plaza de Armas

($$$) Hotel San Pedro Plaza

($$) Nao Victoria Hostel

($) Hotel Santa Maria

What to Do in Plaza de Armas

• Visit the Museo Inka

• People watch in Plaza Mayor

• See pre-colonial artwork in the Museo de Art Precolombino

• Chill out in Plaza Regocijo

3. Where to Stay in Cusco on a Budget: San Cristobal

Naturally, staying in Cusco is much more budget-friendly than a vacation somewhere like London or Paris. But if you want to save extra, head to San Cristobal. Just up a hill from the main square, it's not the ideal spot for people with poor levels of fitness (that uphill climb can be quite steep!) but it is home to arguably the best viewpoint in the city.

San Cristobal perfectly toes the line between being close enough to the sights to be perfect for tourists, while being far enough away that you can escape the crowds you tend to come across in spots such as Plaza de Armas. It has sights of its own, too, such as the Sapantiana Aqueduct, the San Cristobal Mirador, and Siete Borreguitos (Maps here) – arguably the most Insta-worthy spot in Cusco.

The San Cristobal cathedral perched on top of the hill is well worth the visit and offers incredible views over this ancient city. Plus, you're close to Sacsayhuamán, an ancient citadel and one of Cusco's most iconic sights. If you plan on spending the majority of your time in Cusco exploring this incredible slice of history, stay in San Cristobal.

Best Hotels to Stay in San Cristobal

($$$) Hotel Rumi Punku

($$) Hostal Cairhuasi

($) Hostal Qolqampata

What to Do in San Cristobal

• Enjoy incredible views over the city at the San Cristobal Mirador

• Visit the nearby Sacsayhuamán

• See the Siete Borreguitos

• Visit the Sapantiana Aqueduct

4. Where to Stay in Cusco for the Cool Kids: San Blas

Every city has its hipster district and Cusco is no exception. In Cusco, the cool kids stay in San Blas, the hippest neighborhood located just a stone's throw from the city's main plaza. Alternative culture here is rife, with the city's most bohemian residents calling this neighborhood home. If you're on the hunt for vegan food, vintage clothing, or friendly dive bars with hipster vibes, head to San Blas.

If you're planning on getting your hands on alpaca wool (the best stuff is right here in Peru), there are plenty of independent stores selling the highest-quality wool in San Blas, as well as other quirky gift stores where you can pick up a souvenir to take home. In San Blas' central plaza, you'll find a little weekly market where local sellers flog goods, selling everything from alpaca wool to jewelry for affordable prices. You'll also encounter some of Cusco's best coffee here, served by the friendly locals.

Just like San Cristobal, San Blas' uphill location means that it has excellent views of the city, so head to the San Blas viewpoint for an almost bird's eye perspective of the city and the panoramic mountains in the background.

If you follow a more alternative lifestyle, San Blas will be your home away from home, complete with yoga studios and artistic residents making this neighborhood infinitely interesting. Granted, there aren't as many sights to see as there are in the historic center, but this means fewer tourists too, promising you the authenticity of a truly Peruvian neighborhood while retaining proximity to the most iconic spots.

Best Hotels to Stay in San Blas

($$$) Amaru Inca

($$) Amaru Colonial

($) Posada San Blas

What to Do in San Blas

• Enjoy incredible views over the city

• Buy some top-quality alpaca wool

• Explore the local coffee shops and restaurants

• Attend the weekly market in the central square

5. Where to Stay in Cusco Like a Local: Lucrepata

While some travelers want to head to the busiest, most tourist-friendly spots, others like to go off the beaten track. If you relate to the latter, head to Lucrepata, a district centered around the street of the same name to the East of the city center. Thanks to its laid-back vibe, this district is the perfect place for couples and families to stay in, as well as travelers seeking some peace and quiet.

But don't be fooled – Lucrepata is far from boring. Home to plenty of attractive colonial-style buildings as well as friendly independent businesses, Lucrepata offers proximity to the main sights of the city but a more laid-back pace of life.

Another advantage of staying in this neighborhood is its proximity to transport links such as Wanchaq Station and the bus station, making it perfect for getting to other Peruvian hotspots. Many tour companies have their HQs here, so it's simple to book an outing to Machu Picchu or Rainbow Mountain. Plus, it's just a short stroll from the popular hipster enclave San Blas. So you can spend the day sipping cocktails in Cusco's coolest area then retire to Lucrepata for the night for some peace and quiet.

It's not the best area for sightseeing – there's not a ton to do – but it's close enough to the center that you won't be bored. The nearby Plazoleta Recoleta is the perfect spot for an afternoon stroll, and it's worth checking out the charming local church Iglesia de la Recoleta.

Best Hotels to Stay in Lucrepata

($$$) Muru Homely Hotel Cusco

($$) Dreams Boutique Hotel Cusco

($) Golden Inca Hotel

What to Do in Lucrepata

• Stroll into San Blas in the evening to enjoy the bars and restaurants

• Book a tour to a nearby beauty spot with one of the many tour guide companies

6. Where to Stay in Cusco for Authentic Peruvian Food and Vibes: Santa Ana

If you want to explore Cusco but are not big on crowds, avoid the historic center and head straight to Santa Ana. Close enough to the center that you can see the sights but far enough that you can escape the hustle and bustle, Santa Ana is the most authentically Peruvian neighborhood in Cusco.

Home to the Plazoleta Santa Ana, this district is one of the best places to sample authentic Peruvian food at a friendly local restaurant. The Arco de Santa Ana, an attractive arch that gives way to views of Cusco, is also located here, so it's the perfect spot for some travel photography. In this barrio, you'll find families that have been living in Cusco for centuries going about their daily lives, so it's a great place to stay for an insight into how Peruvians really live.

While it's perfect for escaping the crowds, Santa Ana doesn't offer the same availability of attractions as the historic center, but it is within walking distance of Sacsayhuamán, one of the ancient city's most treasured sights. Be aware that Santa Ana is a big distance, with options to stay both closer to and further from the historic center. If you don't check the location of your accommodation, you could end up staying further away than you'd like from the main attractions.

Plus, as will a lot of neighborhoods in Cusco, it's uphill for much of Santa Ana, so it's probably not the best spot for those with low fitness levels. But if escaping the crowds and exploring a lesser-seen side of Cusco is for you, head to Santa Ana.

Best Hotels to Stay in Santa Ana

($$$) Tambo del Arriero Hotel Boutique

($$) Hotel Hacienda

($) Niños Hotel Meloc

What to Do in Santa Ana

• Visit the nearby Sacsayhuamán

• Stroll around the neighborhood and get to know the locals

• Visit the Arco de Santa Ana

Where to Stay in Cusco – Frequently Asked Questions

🏨 Is it better to stay in Cusco or Aguas Calientes?

If you plan on visiting the famous Machu Picchu, you might be wondering whether to visit the town of Aguas Calientes (from where you can get a bus or hike up to Machu Picchu) or Cusco, which requires a train to AC and then a bus to Machu Picchu. My recommendation is both, if you have the time!

Aguas Calientes itself isn't anything to write home about – it's simply a gateway to Machu Picchu. I'd recommend staying in Cusco for a few days to a week, then catching the train to Aguas Calientes and staying a night. The next morning, you can take the bus or hike the two hours up to Machu Picchu.

👣 Is Cusco walkable?

Cusco is a walkable city – it's smaller than Lima so much more manageable without a car or public transport. Plus, the benefit of exploring Cusco by foot is that you'll see more of the stunning colonial architecture as you stroll around ancient sights and charming neighborhoods.

The public transport in Cusco isn't the best – it mostly consists of buses and colectivos – so if walking isn't for you, it will take a little extra time and planning to get around. The good news is that taxis are cheap, so if you don't fancy walking home at night or you plan on visiting somewhere a little further out from your accommodation, it's inexpensive to do so.

🆚 Is Cusco or Lima nicer?

There's no one decisive answer on whether Cusco or Lima is nicer – both cities have their unique advantages. I'd recommend visiting both, but if you only have time for one, here's how to distinguish between the two.

Unlike the Peruvian capital, Lima, which is vast, chaotic, and big on nightlife, Cusco is more laid-back, family-friendly, and historical. While both have an excellent food offering, Lima is better for those seeking nights out and clubbing. Cusco is better for casual drinks or dinners in pared-back, local restaurants, with most of the nightlife centered in and around Plaza de Armas.

Architecturally, I think Cusco is more stunning, thanks to the abundance of colonial-style architecture, but Lima pulls an architectural punch, too. Lima is better for international onward travel thanks to its well-connected airport but Cusco is the gateway to natural beauty spots and the iconic Machu Picchu.

My recommendation would be to visit both incredible cities for the best chance of getting to know the authentic Peru. You can fly easily (and relatively affordably) between the two, so if you have the opportunity, factor both cities into your travel plans.

🚊 How do I get to Machu Picchu from Cusco?

If Machu Picchu is on the bucket list for your trip to Peru, you're in luck, because it's easily accessible from Cusco. The easiest way to get to Machu Picchu from Cusco is to take the train from Cusco to Aguas Calientes (which is around 3-4 hours long) and then travel from Aguas Calientes to Machu Picchu, either on foot (it's around a 2-hour steep hike) or by shuttle bus.

For more adventurous travelers, there's the option of a 4-day trek, also known as the Inca Trail. This is typically a hike but can involve other sports and will get you to Aguas Calientes in four days. If you're a beginner to hiking or not particularly outdoorsy, the Inca Trail isn't for you. However, for outdoorsy types and those with a good level of fitness, it's a great way to see incredible Peruvian views on the way.

☀️ When is the best time of year to visit Cusco?

The rainy season in Cusco and the surrounding areas lasts from November to April. While it doesn't mean you can't visit Cusco during these months, it's not the best time to go walking around and exploring. February, in particular, is terrible for visibility at Machu Picchu, and the Inca Trail actually remains closed to tourists during this month. I would recommend waiting until later in the year if you plan on visiting Machu Picchu.

The best time of year to visit Cusco is from April to October, but bear in mind this will naturally be the busiest with tourists. If you can stand the crowds, head to Cusco and beyond during these months for the best weather. April to May and October to November will be quieter than during the height of summer.

Something to consider all year round is that Cusco is at least 11,150 feet (roughly 3,400 meters) above sea level, so visitors can be prone to altitude sickness or shortness of breath when exploring this ancient city. To reduce your chances of feeling unwell as a result of the altitude, take it easy for the first couple of days while you acclimatize, or take altitude sickness tablets. Try to avoid alcohol as this can exacerbate symptoms.

🚓 Is Cusco safe?

While visiting South America demands a higher level of vigilance than you'd need in Europe or the USA, for example, Cusco is one of the safest cities in Peru. If you encounter crime, it's most likely petty crime, so keep an eye on your belongings.

Only use your phone when you need to and when you're not in the center of a crowd and keep your money in a money belt or a small bag you keep on you at all times. Don't flaunt expensive jewelry or electronics. Most theft in Cusco tends to be opportunistic, so avoid giving thieves the opportunity.

Where to Stay in Cusco – Final Words

This ancient city is endlessly fascinating, with enough history to keep you busy for your trip, and plenty of nearby places that are a staple on many bucket lists (Machu Picchu, anyone?). From the nightlife center of Plaza de Armas to the friendly, local Santa Ana, there are plenty of neighborhoods worth checking out in this incredible city.

With my handy guide, you can establish where's best for you to stay, as well as find a hotel that's right for your budget. Wherever you stay, you'll be simply captivated by the history, architecture, food, and friendly locals on offer from the former home of the Inca Empire.