We ended up at Hostal Loreto because of a mix-up with our reservations at another hostal. What a deal! We paid $40 for a matriomonio. Our room was clean, warm (essential in Cusco during the winter!), and quite spacious. There was plenty of consistent, hot water. And of course, the location is perfect! Right off the Plaza de Armas but it wasn't loud nor was there a lot of traffic outside the hostal. Who can complain about a place that retains an original Incan wall?
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