The amazing property is actually in San Pablo a few minute (and few USD) taxi from Otavalo.
We stayed in Sierra #22 in March 2011 and had plenty of heat from the wood-burning fireplace and all the hot water we needed. Our package included breakfast and taxes.
The restaurant has nice decor and the food was near excellent for breakfast and dinner. There are several inexpensive restaurants in Otavalo for a good lunch.
Otavalo (Andean woolens) (and nearby Cotacochi - leather) are shopper's nirvana and the prices are remarkably low even by Mexican standards.
Unless you live at altitude, I would consider taking acetazolamide to prevent high altitude cerebral edema: two unrelated/separate younger couples from NYC had just arrived from Galapagos and were seriously incapacitated by blinding headaches. They were much improved in 45 minutes after 2 tablets of same.
The service was wonderful and we had an interesting conversation with the owner while walking the grounds (and playing with the Llamas) nearby.
Hacienda Cusin is a real jewel.

I just returned from a five night stay in a true oasis, in a beautiful country. 'Paradise', 'Shangri-la' it all sounds cliched, but how else can one describe arriving at the Hacienda Cusin? There are beautiful intimate courtyards, porches, lush gardens, quiet fountains, hummingbirds, hundreds of orchids, and endless flowers.

The hacienda compromises both an original historic hacienda and the monastery, both are decorated with antique textiles, tiles, statues, murals and paintings. The host is gracious, truly appreciates the local culture and region, and is incredibly helpful with travel plans. He truly made you feel like you were his personal guest spending time at his home which he wanted to share with you.

I spent several days on local day trips in the surrounding region but also spent two days just at the hacienda wandering the grounds, taking photographs, drawing, and reading. I recommend walking very early in the morning when the light is soft and absolutely golden flooding the gardens.

The rooms do not have TV, but what a luxury to turn off the constant noise of movies, TV, and the internet. I was traveling solo, so the quiet time was golden. For others, there are other facilities like squash, horseback riding, bike riding, basketball, and a video library.

My room was beautifully decorated with antique textiles, local antiques, and paintings. Each night there was a roaring fire in the fireplace, and a hot water bottle under the covers. The modern bath was and clean; there was strong water pressure and hot water (not always the case in Ecuador).

The staff is very friendly and always offering to help. They will provide a taxi service to the many local sites, parks, and markets, which are all worth visiting. The local town, San Pablo, is poor but very charming, however the walk to the lake can be dusty.

The breakfast is copious (fresh local fruit juices, yogurt, granola, and farm fresh eggs). The soups at lunch and dinner are delicious.

There is so much one can say about Hacienda Cusin but I guess I will start with friendly atmosphere and beautiful gardens. The Hacienda is very well run and keeps the tradition of hundreds of years of existence. The gardens are wonderfully kept and each room has a very traditional decoration. The food at the restaurant is delicious and the bar very well stocked with top shelf liquors to please every guest in the hotel. Staying at Hacienda Cusin is for sure a pleasant experience.

I recently stayed at Hacienda Cusin and enjoyed the stay immensely. The common rooms were inviting with warm fireplaces to dry off after a rainy walk. The service was prompt and attentive and spoke excellent English. The food was generally good and the cuy was a nice touch. Beds were comfortable and the fireplaces were warm. The location was a bit remote but they were willing to drive you into Otavalo proper. The grounds were well-kept and very green.