We stayed at this hotel 3 nights before marching to the Inka trail. I must say we really didn't like our stay. The rooms are crazy cold, dark, the bed very uncomfortable and simply ugly (old, dirty etc); very noisy, we woke up with other ppl several times; the breakfast is depressive, with 3 day old bread (not a single toaster) and 4 HALF slices of crappy ham! Also we were going to hike the Inka trail and needed to drop our bags (all hotels have this service) however, at this place, they just put the bags at the reception where anyone could steal it. I guess the only good thing about this hotel is the location, around the block from Plaza de Armas. We paid $50 per night, had we paid $25 I would say you get what you pay for, but, $50 in Peru goes a long way and they could at least get fresh bread and put more food.
We also had problems with the water. It was scarce and cold, it was a nightmare to take a shower because we were always freezing and if you have long hair like me... don't want to remember it...
We ended up switching to Awkis Dream hotel, where we paid $45 and it was a much nicer place to stay.

It is very difficult sometimes to rate hotels. What basis do you use for a standard? This hotel has an excellent location. Just over 1 block from the Plaza de Armas. The rooms were clean and simple. The bed was hard. The shower used a instant water heater which meant you had a choice of hot water or volume, but could not get both. I gave this hotel a rating of average since it cost roughly $28 (US) per night for 2 of us, including breakfast. I doupt there is another place in this price range in such a good location. We stayed 2 nights. I would have come back to this hotel but my wife felt the beds were too hard, so we went elsewhere when we returned from Aguas Caliente.

This place is certainly worth consideration based on the price and location.

Terrible, really terrible. I stayed there for 1 night ... the rooms were dirty and bad illuminated. When we arrived, the girl of the frontdesk showed us a room that couldn't be closed from the inside ¿? Instead, she offered me a padlock (but the room would still be opened when we were inside ¿?) Then, she offered us another room, but actually she never could open the door (the lock was broken). Finally, she gave us a room, very small, and dirty. When we were sleeping, we heard noises from the couple of the next room (the walls were so thin that you could hear everything!).
The breakfast is served in the yard, and given that Cuzco is a cold city in the early morning, your breakfast will be served frozen too.
Finally, I made a reservation in order to sleep there when I return from Machu Picchu (an amazing place!). It was like 2 am and we were returning from Machu Picchu (the train lines suffered a problem because of the weather) when we arrived to Casa Grande. As soon we got inside to the hotel, the boy of the frontdesk told us that they were overbooked and we couldn't stay there (he offered us to go to another hotel)... we had to accepted his offer because we had no choice.

The hotel is very different from the pics you see in the internet. The bedroom smelled very badly, the shower is only hot with a few drops of water and there was one day that there was no water at all. The blankets and sheets had stains on them and the breakfast is very poor.
The location was great, but I am sure you can find hostels better than this "hotel" just as well located.