Kusillo’s Posada (Federico More 162, tel. 051/36-4579, kusillosposada [at] yahoo [dot] es, US$16 s, US$29 d with breakfast), a backpacker’s hostel, has a very homey feeling. The first-floor living room, dining room, and kitchen are open to guest use, and the upstairs bedrooms are bright and clean with telephones and WiFi. This is a good place for a long-term stay.
Casa Panq’arani (Arequipa 1086, tel. 051/36-4892, www.casapanqarani.com , US$25 s, US$50 d with breakfast) “is not a restaurant, neither a hotel,” the owners claim. “It is grandma’s house for you to stay in.” Nothing could be truer. Consuelo Giraldo and her family live in this beautiful dreamlike house, which has some extra rooms with private bathrooms, and a terrace, giving you the feeling that you are not staying at a bed-and-breakfast. You can order meals cooked by Doña Consuelo, including local traditional food or other dishes. This is probably one of the best places to stay in Puno .
Posada Don Giorgio (Tarapacá 238, tel. 051/36-3648, www.posadadongiorgio.com , US$29 s, US$43 with breakfast) is another cozy option some blocks away from downtown, with great service in a very relaxed and quiet atmosphere. Rooms are quite simple but with comfortable beds and very clean bathrooms. There is WiFi, a small business center, a good restaurant, and rent-a-car service too. This is a highly recommendable place to stay.
For a more traditional hotel, the quiet Sillustani (Tarapacá 305, tel. 051/35-1881, www.sillustani.com , US$40 s, US$56 d with breakfast) has comfortable, carpeted rooms with bathtubs and cable TV. Buffet breakfast is served in a formal dining room.
The most elegantly old-fashioned place in town is the Belgian-owned Colón Inn (Tacna 290, tel. 051/35-1432, www.coloninn.com , US$50 s, US$60 d with breakfast). This hotel’s large rooms are arranged around a marble-floored lobby, sun-filled sitting rooms, and atrium. Rooms have cable TV and writing desks.
For some unknown reason Puno  has four hotels named “plaza,” very close to each other, and with almost exactly the same rates. They’re all relatively new and comfortable, and have friendly staffs.
Plaza Mayor Hostal (Deústua 342, tel. 051/36-6089, www.plazamayorhostal.com , US$55 s, US$70 d with breakfast) has king-size mattresses, feather pillows, bathtubs, and cable TV. Breakfasts are served in a window-lined dining room. The hotel has all major amenities, including WiFi and heaters in the rooms.
Casona Plaza Hotel (Arequipa 655, tel. 051/36-5614, www.casonaplazahotel.com , US$55 s, US$70 d with buffet breakfast) has 64 comfy and spacious rooms, with very nice bathrooms, hair dryer, room heating, cable TV, WiFi, and 24-hour room service. The hotel has a restaurant-bar, laundry service, free Internet, private garage, and medical assistance. It is conveniently located one block from Puno’s Plaza de Armas.
Sol Plaza Puno (Puno 307, tel. 051/35-2658, www.solplazahotel.com , US$55 s, US$70 d with buffet breakfast), half a block from the Plaza de Armas, is another of these new options in town, with nice comfortable beds in the rooms, despite the decoration, which is quite cheesy. Services in this three-star hotel include bathrooms with showers and bathtubs, room heating, WiFi, cable TV, oxygen if requested, a bar, a restaurant, and massage service upon request.
Puno Plaza Hotel (Puno 419, tel. 051/35-1424, www.punoplazahotel.com , US$60 s, US$70 d with buffet breakfast) offers great views of Puno’s Plaza de Armas and cathedral from its rooms on the third and fourth floors. This hotel also has two suites (US$100), which are quite fancy. Owner Humberto Béjar is also a skilled chef; he leads a very friendly staff.
Casa Andina has two hotels in the city. Casa Andina Classic–Puno Plaza (Grau 270, tel. 051/36-3712, www.casa-andina.com , US$76 s or d, US$109 superior room, with buffet breakfast) is a block away from the Plaza de Armas, with comfy rooms, cable TVs, elevator (very useful if you’ve just arrived to Puno), oxygen upon request, WiFi, and down comforters. Casa Andina Classic–Puno Tikarani (Independencia 143, tel. 051/36-7803, www.casa-andina.com , US$87 s or d, with buffet breakfast) is the better option of these two, away from downtown, with a quieter atmosphere. This hotel has a fireplace and a courtyard but most importantly more spacious bedrooms than her sister hotel. It also has all amenities, including an ATM and oxygen upon request.
An affordable luxury option, on the lake near Hotel Libertador Lago Titicaca, is Sonesta Posada del Inca (Sesqui Centenario 610, tel. 051/36-4112, www.sonesta.com , US$115 s, US$125 d). Rooms are cheerful with plaid bedspreads, warm colors, heaters, and all the amenities. An exquisite breakfast buffet (US$7) is served on a lakeside dining room or outdoors on an open porch. The hotel also has oxygen and Internet (US$4/hour). The Yavarí,  Puno’s most interesting attraction, is docked a few meters away.
If it is a chilly day on the lake, you can slip down to the lobby of Casa Andina Private Collection (Sesqui Centenario 1970, tel. 051/36-3992, www.casa-andina.com , US$115 s, US$130 d) for a hot cup of tea. But if it is bright and sunny, throw open your windows and step out into your lakeside balcony. Half the rooms face the lake, and all have down comforters, cable TV, telephones, and writing tables. The bar serves an excellent muña sour, the local take on pisco sour, and the lakeside restaurant serves the flavorful Novoandino menu of U.S.-trained chef Teddy Bouroncle. There is also a business center with fast Internet, a jewelry shop, and a small gift store.
Of all the former state-owned hotels, the five-star Hotel Libertador Lago Titicaca (Isla Esteves s/n, tel. 051/36-7780, www.libertador.com.pe , US$195 s or d with breakfast) is one of the more stunning. It is like a huge alabaster cruise ship, perched on its own island jutting into Lake Titicaca . From the marble lobby, the rooms rise on both sides over a huge glass-enclosed courtyard and an expansive, elegant area with a bar and couches. Lying in the king-size beds, surrounded by five-star amenities, with the sun rising over Lake Titicaca, is truly deluxe—especially when you consider the spa and whirlpool tub awaiting you. The hotel even has its own dock, where tours leave for the islands.