We stayed in La Fuente Arequipena in July 2010.
My spouse got ill on the way to Arequipa, that's why we had to prolong our stay in this beautiful city (from two days to one whole week). We stayed one night at the Hotel Inkari, which wasn't at all what we were looking for. We relocated to La Fuente because of the good reviews here (Although it is a bit more expensive than the Inkari = 90 Soles). But it was the right choice! The owners cared for us as we were family members. We felt like home and real secure. They organised a very nice and capable doctor, who managed to heal my spouse before we got to leave South America. We've been able to visit Machu Picchu instead of returning back home. We are very grateful for this :)
Location of the hotel is a bit outside of town in a very quiet part of Arequipa, but still only 5 minutes to La Plaza Mayor by cab (2-3 Soles) or 12 minutes walking. To the Terrapuerto 6 Soles approx. 30 minutes.
Our room (# 203 for 55 USD) was spacious (20 m2), always hot water, a king-size bed, breakfast extensive (incl. also eggs and mate de coca), cable TV (even HBO = very important if you have fever).
We were highly satisfied with the service :)
Thank you La Fuente Arequipena! You saved our Peru trip!