I highly recommend the Inka Frog Hotel in Miraflores, Lima,
First and foremost the staff are outstanding: 110% helpful and genuine.
For example I had the shock of a last minute flight cancellation just as I was leaving the Hotel for the airport. Not only did the staff arrange my unexpected extra nights' accommodation with them but then spent 20 minutes on the phone with LAN Airline sorting out what became a complex be-booking issue when I had little to none Spanish.
In addition, the place is clean, well managed and good value for money for the 'middle budget' traveller and situated in a nice part of Lima.

We stayed in a basic room with the bathroom in the hall - the hostal was clean and the staff were friendly and helpful. They provided a good breakfast. If you are looking for a good budget place to stay this is it.

This is a pleasant hotel with a modern look and very clean. The location is in a quiet neighborhood, about 10-15 minute walk from downtown Miorflores which is where the restaurants/nightlife are. Its a 5-8 soles taxi ride depending on time of day. We got the airport service from the hotel on the way in just for convenience which is $20. The entrance of the hotel is actually a little ambiguous. On the way out as we had an early flight, got the number of a cab driver we used during the day that felt comfortable with and was charged 30 soles. The breakfast is pretty decent. There is a nice bakery across the street. Our room had a bathroom that was outside in the hallway but private for the rooms use.

Nice hostel at a reasonable price.
Location in a good neighborhood but little access to complex.
You can take a taxi downtown, a half hour.
The rooms were spacious, large bathrooms and comfortable with hot water all the time. The rooms are generally quieter.
No parking, but you can park on the street or parking lot nearby.
Benefits: Very friendly service, value for money and safe neighborhood. The hotel staff helps with any problems. Breakfast includes omelets, banana caramel, hot drinks and freshly squeezed juice.
We slept there the night we get to Peru and really enjoyed.
In summary: It is strongly recommended if the location is right for you.