A friend of someone that we had met on our flight brought us here and boy am I glad they did. We got a huge discount on our rate, partly because it was off-season and partly because the friend knows the owner, Fernando. Everyone was extremely kind and helpful, from answering questions about bus schedules to letting us keep our bags there when we went to Machu Picchu.
The rooms are not special by any means, but they were very clean and the beds were quite comfortable. The bathrooms were just as clean as the rooms, and the showers were hot with good water pressure.
As for the location, it is in the nice, quiet neighborhood of San Blas. It's definitely not stumbling distance from the bars and clubs but it is only a cheap $1-2 taxi ride away from the main action.
Overall, there are hotels with better facilities and aesthetics out there, but the friendliness and helpfulness of the staff would certainly make me want to stay here again!
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