In a residential neighborhood, 10 minutes south of the center, The Point (Lima 515, tel. 054/28-6920, www.thepointhostels.com [1], US$8–11 dorm, US$15 d) in Arequipa is part of a backpacker hostel chain. On-site is everything to keep you entertained: Internet, TV and DVD player, a shared kitchen, and nightly parties that gather on the rooftop terrace. Bathrooms are shared but there is hot water. This is a great option to meet other backpackers and partiers.
Links:
[1] http://www.thepointhostels.com