Everything in Cuzco is up a big hill so you'e going to get your exercise.
There's nothing spectacular about this small hotel, but the staff did seem friendly enough and it seemed to be within easy walking distance of the town square and many small restaurants. We only stayed one night and my clearest memory is of how cold it is. We visited in April and some of it was under construction. Be careful at night because the "hallway" we were in was open air and there weren't any lights so it was pretty easy to stumble. The room was simple and beds comfortable, but there are no heaters unless you rent them. It was only a few dollars and money well spent. The bathroom had open "vents" that just were holes to the outside so the bathroom was cold all night long. The water however was nice and hot.
Our stay included breakfast and it was simple yet very nicely prepared and the staff got up a little early to make ours before an early morning train departure. We stayed as part of a package so I don't know the rate, but it's a good option for a budget / no frills traveler.More