A great budget option is Hostal El Dorado (Arenas 131-C, tel. 083/32-2005, US$8 s, US$11 d), with private baths, cable TV, and telephones in the rooms. The rooms are a bit musty, but there are banana and lemon trees in the patio, a swing set, and humorous stalactite formations in the eaves of the rooms.
The best place for a comfortable night’s sleep is the quiet Hostal El Imperial (Díaz Bárcenas 517, tel. 083/32-1578, US$14 s, US$23 d), with great beds, cable TV, hot water, parking, and good service. Rooms without bath are about half the price.
Across the street at Hoteles y Turismo Abancay (Díaz Bárcenas 500, tel. 083/32-1017, hotelturistas [at] yahoo [dot] es, US$20 s, US$46 d with breakfast), the rooms are a bit stuffy and overpriced, but the restaurant is probably the best in town. Third-floor rooms are significantly more expensive. It has cheaper rooms without private bathrooms.
Hotel Flor de Amancaes (Lima 840, tel. 083/32-3094, US$9 s, US$12 d) has simple, clean, tile-floored rooms.