The 20 Best Hotels in the Sacred Valley, Peru (2025)

Once the epicentre of the Incan Empire, the Sacred Valley — which stretches from Cusco to Machu Picchu — is breathtakingly beautiful. There's an activity for everyone here whether you would rather spend a day hiking in Peru's Andean Highlands or exploring ancient historic relics. Our pick of the best hotels in the Sacred Valley are equally varied; we have recommendations which range from chic boutiques in historic buildings in picturesque Cusco to luxurious contemporary stays designed to maximise stunning views. 

For a historic stay

• The Belmond Hotel Monasterio is set in a striking 16th-century monastery in the heart of Cusco, boasting leafy courtyard gardens, antique furnishings and original art. This is an atmospheric and luxurious choice from the renowned Belmond group.
• By the same chain and equally luxurious is Belmond Palacio Nazarenas. This remodelled palace has walls made of stones carved by the Incas. Suites come with their own bar and butler and there's a spoiling spa too.
• Inkaterra La Cason is a boutique option in a beautifully converted colonial mansion. It’s decorated with antiquities dating back to the days of the Spanish Empire. The superb Peruvian restaurant is a real lure.

For Machu Picchu

• The Belmond Sanctuary Lodge has an unbeatable location, right by the entrance to Machu Picchu. Rooms are charming and have fabulous views from the terrace. An easy pick.
• The Inkaterra Machu Picchu Pueblo Hotel is in a beautiful, riverside spot about half an hour away from Machu’s Picchu’s entrance, in Aguas Calientes. Choose this hotel for the atmospheric rooms with working fireplaces and exposed beams. A cosy base to return to.
• The Sumaq Machu Picchu Hotel is in a beautiful spot at the foot of the mountain below Machu Picchu, close to the Vilcanota River. Rooms are contemporary in design, and the views are amazing.
• Casa del Sol boasts a privileged location in the village of Machu Picchu. Fall asleep to the sound of the Vilcanota River beyond your private terrace in a suite dressed with traditional Andean textiles, or choose a room with Machu Picchu views.

For Cusco

• El Mercado offers a fabulous mix of traditional and contemporary decor in the centre of Cusco. There's a gorgeous terrace for evening drinks and the city's attractions are within walking distance.
• The Palacio del Inka is an elegant hotel right in the heart of town. The decor is colourful, from the smallest room to the excellent Andean restaurant. There’s also a range of spa treatments available — perfect after a busy day sightseeing.
• For a boutique option, Casa Cartagena Boutique Hotel is a good choice. Set inside a beautiful brick and adobe property, this hotel offers guests an authentic taste of historic Cusco. The Andean-inspired spa is a real plus.
• Another boutique stay is Aranwa Cusco. Housed in a 16th-century colonial mansion in Cusco, rooms have classic interiors to complement the heritage property's original features, from frescoes to exposed stone walls. Well positioned near Cusco's impressive cathedral.

For adventurers

• The Belmond Hotel Rio Sagrado is a collection of luxurious rooms and villas in a breathtaking spot near Ollantaytambo. In addition to an excellent spa, the hotel offers numerous outdoor activities, including horse riding, rafting, and cycling.
• Explora Valle Sagrado is a uniquely designed boutique hotel with contemporary decor and gorgeous views of the Urubamba Valley. The hotel offers more than 20 exclusive guided excursions, and bikes are available for guests to use.

For total relaxation

• Tambo del Inka, close to Urubamba is a luxurious hotel boasting extensive spa facilities complete with a stunning indoor pool. Expect a superb Andean restaurant and peaceful surroundings.
• El Albergue is about 19 miles from Machu Picchu, in a peaceful spot on the outskirts of Ollantaytambo. There are just 15 rooms, decorated in a chic, rustic style, plus beautiful gardens and beautiful views. If you’re fresh off the trail you’ll appreciate the sauna and the possibility of booking a massage.
• Off the beaten track, Sol y Luna is a collection of charming bungalows overlooking the Urubamba Valley. The decor is Peruvian and there’s a wonderful restaurant. Yoga, tai chi, a large outdoor hot tub and massages all aid relaxation.

For great value

• Right in the heart of Cusco, just a short walk from the Plaza de Armas, Unaytambo is a large, colonial house with 14 rooms — many with private balconies. There’s a beautiful terrace and the decor is colonial too. 
• For a slightly higher room rate, you can stay in the much larger Costa del Sol Ramada Cusco, a converted 17th-century mansion in the centre of Cusco. There’s something rather splendid about this hotel arranged around an arcaded central courtyard.
• El MaPi is a good compromise and offers great value, considering how close you are to Mach Picchu. Stylish and contemporary, the hotel has a great restaurant and the option to treat yourself to a massage, or a soak in the hot tub if you’ve been on the trail for a while.
• El Retablo is a charming B&B in the centre of Cusco. Set in a restored heritage building, pick this option for the fun contemporary design and the attractive price tag.

Still not sure?

• Consult our guide on where to stay when you visit Machu Picchu or our guide to the best places to stay in Cusco
• Or our guide to the best places to stay in Machu Picchu town
• Alternatively, you could contact one of our friendly Gurus for personalised advice.