My friends and i stayed at Arqueologo hotel for a total of 4 nights in November 2012. We stayed in Cusco, before going to Machu Picchu. We only reserved for the first night in Cusco here, but we ended up spending our entire nights in Cusco here. I just fell in love with this hotel. I have no problem with the facilities, rooms, and services, but I have a BIG complaint about the exchange rate when I paid with my credit card. The Soles/$ exchange rate was about 2.5 when I visited Peru, but when I paid my bill with my credit card (Master card), they used the exchange rate of 2.7!!! It's almost 10% tax on credit card transaction. I could ran to an exchange bureau but did not have time because we had to catch a cab to the airport. I hate this!!! But other than this cheating, I love the hotel. Below are the pros and the cons, and some pictures.

Pros:
(1) Not super-new but the decoration of the room is lovely (see my pics). The hotel has a colonial style, a cute garden in the middle of rooms. We enjoyed relaxing in chairs in the garden in our first day in Cusco, adjusting to 3400m.
(2) Easy walk (a bit upward but...) to the central square. Less than 10 minutes. Never felt dangerous even at night.
(3) Shower in my room (Rm 302, next to the reception) worked very well. Water was hot, and the water flow was strong. But my friends (in Room 102) complained that their shower was not as good as mine. So check shower before deciding your room.
(4) They offered a welcome pisco sour, which was very good.
(5) The heating in the room was no problem.
(6) Breakfast was very nice. The breakfast room was decorated in a lovely manner.
(7) The staff (especially the ones working at the bar and the restaurant) are very friendly and nice!
(8) The restaurant attached to the hotel was one of the best in Cusco we thought. It's a bit far from the center of tourism, so it's less pricy, but the quality of the meat and the chef were superb. We liked the restaurant so much we decided to come back for our last supper in Cusco. They also have almost-daily jazz or singing performances at the restaurant.
(9) For the quality of the rooms and services, I think the hotel is very reasonably priced.
(10) They have free wifi, but it seems that they turn off the wifi at night. I did not get signals in my room (at night).
(11) They kept out bags when we visited Machu Picchu and stayed in Aguas Calientes for one night.

Cons:
(a) In the first night, although I made a reservation through hotel.com the day before, we were told that they do not have our reservation in their system. According to them, their system is not connected to hotel.com server on Sunday (the first night of our stay was Sunday). At the end they had some vacancies so there was no problem, but they gave us standard rooms although I reserved superior rooms. So be careful.
(b) The Soles/$ exchange rate was about 2.5 when I visited Peru, but when I paid my bill with my credit card (Master card), they used the exchange rate of 2.7!!! It's almost 10% tax on credit card transaction. I could ran to an exchange bureau but did not have time because we had to catch a cab to the airport. I hate this!!!

At the end, I love my stay. If they did not charge 2.7 soles/$ for my bill, I gave five stars. Now I learned the way they tricked their customers, I think I come back to this hotel when I come back to Cusco.

This hotel could have been a perfect experience, but it wasn't quite. For Cusco it does seem very reasonably priced and there is no question that I would stay again. I loved the "loft" room ... with a small living room and beautiful bathroom downstairs and a huge bed and airy, open feel in the upstairs loft. Caution, if you have trouble with narrow curving stairs, you don't want this loft room. I didn't care that there was no TV ... I wasn't in Peru to watch TV. OK ... so my little travel problems ... it started before I got to Peru and was trying to get an entrance ticket to Machu Pichhu. The travel agent associated with the hotel said they could get me one. When I arrived they didn't have one. They were able to get one the day before my travel to MP ... however it was really dicey and close and they had to get a Montana ticket rather than the regular ticket. It was both bad and good service. Second ... the hotel advertises that they pick you up at the airport. But the front desk person said they wouldn't. But the reservations person said they would. And when I arrived at the airport, there was no one to meet me. A phone call by a local person to the hotel ... and they did send someone. But it was a waste of time.

Although there were problems ... overall it was a great place and I'd do it again, but perhaps be a little smarter next time ... maybe something you can learn from my experience.

Spent 3 nights here in early October. Good location in Cusco, on a quite street, just a few minutes (uphill, might be problem for someone) walk from Plaza de Armas. Rooms were nice (we had a loft-type room with king bed). No TV in the room, but you can request. Friendly and helpful stuff. Used their travel agency to arrange all our tours in Cusco area, reasonable priced, great service. Front desk staff was friendly & welcoming. Great breakfast included, free wifi. I would stay here again.

I love this hotel. It's cozy, in a great location a few minutes walk from Plaza de Armas and Sacksaywaman, and the staff are all so friendly and helpful. The bedrooms are clean and comfortable and have a very cozy, country-cabin feel, the showers are hot, and the breakfast was great. This hotel is a great value for the price. You won't be disappointed!