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Belmond Palacio Nazarenas (*****)

Set in a tranquil plaza behind Cusco's main square, this former palace and convent emerged from years of restoration to become one of the city's most exclusive hotels. Step past walls of Inca stones and into a cloistered courtyard with an ancient fountain at its heart. Then be surprised as contemporary Cusco comes to the fore: a fabulous spa, the city's first outdoor pool and stylish restaurants serving cutting-edge local cuisine. This intimate urban retreat has just 55 suites, each enriched with oxygen and with its own private bar where guests can create drinks accented with fresh ingredients grown at and around the hotel.

Encantada Casa Boutique Spa (***)

Casa Boutique Spa ENCANTADA is situated in the bohemian, artisan district of San Blas in the historic center of Cusco, an area of peaceful, picturesque narrow streets lined by whitewashed colonial-style houses. The tasteful, modern design offers stylish comfort and is surrounded by lovely, flower filled gardens where you can relax when not out exploring the Cusco region. From the garden there are fine views of the red tile roofs of the perfectly preserved historic center of the city. Located away from the bustling streets of the center, but still just a few blocks from Cusco’s main square, Encantada overlooks the city from its vantage point in the San Blas district. From the hotel, Cusco’s churches, museums and Inca streets are all just a short walk away, and in the hills above the city the Sacsayhuaman Archaeological Park is close by.

Libertador (*****)

Iconic Inkan Environs A storied mansion dating back nearly five centuries, Palacio del Inka stands in the historic center of Cusco. Directly across from the Koricancha, it is a five-minute walk from the main square and less than a mile from an array of museums, markets, and restaurants. Cultural Connections Uniting the past and present, Palacio del Inka Spa presents indigenous treatments and an indoor therapy pool. Meanwhile, Inti Raymi Restaurant offers authentic Peruvian dishes, while a variety of meeting and events venues invites guests to host an enchanting occasion. Historical Décor Our 203 exquisitely appointed guest rooms combine Peruvian art and handcrafted furnishings with contemporary amenities—from a signature Luxury Collection bed to state-of-the-art technology, including an LED TV, High Speed Internet Access, and an iPod docking station.