Me and my Fiancee stayed here during our trip to Peru in Feb 2011. We stayed in Tarapoto for 5 Days at the La Posada Inn - its centre of town convenience was one of the main reasons we stayed here, but the rooms themselves were quite sub-par.
We stayed in the biggest room, upstairs overlooking the street. It was quite a nice room for the price (40 Sol. i think) - it was quite loud during the day... as they only use motorbikes in Tarapoto. The problem struck at night... when we started scratching and heard noises from the aircon. When i went outside and peered in with a torch all i saw was Rat Droppings. That was a pretty average night.
The following morning we were moved rooms to a MUCH smaller room, still with aircon, but no window sill like the big one. Which was a bit of a bummer. But no scratching. And it did the job as we were only there for the evenings.
2 out of the 5 days my fiancee was sick and bed ridden - which was pretty annoying considering we were now staying in a tiny room with no window. But the chemist was 2 minute walk away which was good.
The food in the downstairs cafe was quite nice and inexpensive. However we were turned off when we found a big clump of dirt in my fiancees Lamo Soltado (it turned out to be from the Potatoes they were cleaning, dirt clump flew onto her food). Nevertheless we got a refund and didnt go back for food.
Probably the best thing about the hotel, was the breakfast. Big hearty, omletes with 2 breadrolls, juice, coffee. It was actually amazing and tasted fantastic.
The only good thing about the place is its closeness to everything, ESPECIALLY the Banana Burger 2 minutes walk up the road. That makes the BEST BURGERS i have ever tasted... and i had a burger in 25 Degree's Hollywood (the best burger joint in LA) and this one Topped it. 5 Sol. for a Massive Burger that isn't to heavy with Meat, Cheese, Egg, Bacon, French Fries, Lettuce, Tomato, Topped with a Glazed Bun - it was like Hot Chocolate filtered through Santa's Beard.
Overall; poor experience, excellent breakfast, good central location though - wouldn't recommend it.