From the editors of Condé Nast Traveler:

This sprightly newcomer might well steal the spotlight from the Hotel Monasterio, long the top luxury option in Macchu Picchu's gateway town. Cusco's architectural heritage of Incan stone walls topped with colonial white stucco is echoed in this sixteenth-century building on a square steps from the main plaza. With just 11 suites, La Casona has the intimacy of a private home, and the building's colonial charms come with smart modern touches such as iPod speakers. Inside, a grassy courtyard is surrounded by rooms on two levels. Owners Denise and Joe Koechlin have fussed over every antique- and craft-strewn square foot of the place, and exquisite pillars, retablos, and benches have been sourced from all over Peru. The excellent restaurant—don't leave without trying the quinoa pancakes—offers a good deal of Andean hospitality.—2009 Hot List

When to go: June through August, the dry season.

Which room to book: Any of the plaza suites, which block out street noise.