Chose this hotel based on price and location. Was going to be staying here after the work part of my trip in a different part of the country, but ended up staying an entire week. The location on the Plaza de Armas is wonderful. It's easy to get a cab and there is plenty to eat nearby.
The downside, and it's a big one that I missed when reading other reviews, is that there is a nightclub that shares a wall with the hotel. If you are going to be clubbing all night anyway, it may not be a big deal. But if you have to get up early for work or to go on a tour, beware. The nightclub will keep you awake until they close. I'm not sure exactly how it works, but a few nights the very loud music lasted until after 3. On one night it was way past that. Getting up to take a taxi to Poroy for a trip to Machu Picchu was very hard after being kept awake until after 4 am!
I wasn't really expecting it, but I was still disappointed when I asked about checking out late (my departing flight was at 7:40 pm) and was told that it would cost an extra USD40. Considering the noise issue and the fact that we ended up staying for an entire week, I was hoping for a little leniency, but it didn't happen. I guess as a tourist hotel, they probably don't expect to see customers again anyway.
I don't have any experience with other area hotels to know if what I experienced was the norm for the city or not, but if there are other hotels without nightclubs right next door, I strongly recommend that over this hotel.