Like CalgaryWanderlust, I too stayed in room 102 for three nights and can confirm that the room is cold at night without any means to warm it up. Fortunately, the beds have heavy blankets but I wasn't planning on roughing it.
I too heard scampering overhead and it went on occasionally, sometimes loudly. Not too good in a very dark room.
One night, the water was coming out slightly warm from the hot water tap. Fortunately, this improved the next evening when I came home and needed a nice relaxing shower. The shower head however, does deliver water like a fire hose so be prepared. I also noted that
hotels in Peru do not provide wash cloths so, bring one if you need it.
The Internet connection is a little slow (wifi is available in the rooms with password on the night table), it isn't any faster using their wired one in the lobby.
The staff was friendly and helpful so, these are not trying to discourage you if you decide to stay but be prepared. It's just a couple of blocks from the main square which is very convenient.

We stayed at this hotel in transit to Macchu Picchu and I enjoyed My stay.
The location is close to shopping and dining in Cusco and most attractions are within walking distance.
Our room was clean and the bathroom had hot water and a decent shower.
It's not necessarily a unique hotel, but the courtyard is lovely and it really does the trick for traveller's on a budget.

There are actually two Hotel Garcilascos in the same street. I think I stayed in no.2. Interesting colonial courtyard with old but clean rooms surrounding. There is wifi in the courtyard and lounge and a roaring fire at night.
Breakfast is buffet with lots of fruit which I appreciated.
The staff are very helpful and honest. I left my ipod in the lounge and it was returned to me the next morning.
I changed rooms because the first was a little musty probably not having been used for a while, the second was ok and I was plenty warm enough in bed. Plenty of hot water and a clean bathroom.
Location is great only a couple of blocks from the central square but away from the crowds. PLaza San Francisco is one block the other way

I stayed there as a solo traveler. On the first 2 nights, I stayed at room 102. It was cold, damp and noisy. I would wake up early mornings to the sound of scamperings (rats ??) from the roof or the room above me. After my trek, I stayed again for 2 more nights as this was the hotel pre-arranged by my travel agent. I was assigned room 105 which was definitely better, more modern, but so cold. I have a heater but it takes a while - 2 hours !! - before you can feel the warmth.
The hotel is okay - I only stay there to sleep anyways. But if you are planning to spend more time relaxing, I would recommend some other more comfortable and cleaner place.