We stayed one night here and yes, there are a flight of stairs to climb before reaching the entrance of this place. They served coca tea upon arrival. It's a nice, clean place though and the breakfast buffet was okay (juices, coffee, yogurt, cereal, scrambled eggs, sausage, cold cuts, fruit). There was a portable heater in the room as it does get a bit chilly at night. Location is a few blocks from the main square so it's good except for the stairs. There were two computers available for guests to use and never a wait. Walls are thin and you can hear the tv down the hallway. The staff was pleasant, but most aren't fluent in English. All in all, a satisfactory stay.

We spent two nights in this hotel - on our way to and from Machu Picchu. The rooms were clean and both nights we had extra beds in our room although we had booked for a double (or matrimonial as the travel agent called it!). We were able to leave the majority of our luggage at the hotel while we travelled to Machu Picchu, stayed over night there and returned the next day. The staff were very pleasant and although they didn't speak much English we managed okay with a few hand signals.
The hotel is about 3 blocks from the main square in Cusco so the location is good. There were two computers (that we found) with free internet access for guests. It wasn't a fast connection but free was nice.
We would stay here again.

Hotel Suenos del Inka is located up an alley of stairs a few blocks from the main square in Cusco. The neighborhood seemed fairly safe, and the walk up and down the steps to the street gave the place a welcome timeless feel, missing in many hotels in the United States. The rooms were clean and comfortable, nothing fancy. Overall, the service was very good, and the staff, though limited in their English, was freindly and helpful. Breakfast was good and the coffee strong, and there was all the coca tea you wanted in the lobby. I ate dinner one night at the hotel and the meal was better than the meal I ate at one of the restaurants near the square that had been recommended by a guide.

Within a block of the hotel there is a small store to buy snacks and drinks and for those long-term travelers a laundry.

We booked this hotel because it was the default option with the package we booked. I'm glad we didn't upgrade, because this hotel met our every need. Extremely helpful staff, ready to serve us coca tea or bring us up a bottle of wine. Our room faced an inner courtyard - certainly not an exciting view, but the rooftop deck provided that.
The room was clean and quite spacious. The breakfast was satisfactory. Two internet computers were available at no charge. Very close to the main square.
Overall, no complaints at all, except for the upstairs walk both to the hotel and to the room (no elevator)! - but certainly much nicer than we expected from the "default" option.