I traveled in July 2010.
Thank to all reviews at Tripadvisor, I chose this hotel and was happy to stay there. Unfortunally, that some days before in Arica, Chile, on private tour in port all my things including money were stolen (driver didn`t close the doors in the car - we went just some metres from car to see pelicans and sea wolfs), so I stayed there only one night instead 4 (then moved to another free hotel, payed by company, which driver was guilty in my accident), but the hotel is very plesant.
Nice territory with sun yard, attentive reseption, where you can get a plan of town ask for private taxi for looking sightseeng. Good english speaking driver for whole day (10-11 hours) for all sightseeng up to Ollantaytambo costed me just 60 dollars!
In the room it was very warm and cosy alpaca blankets and rather big bathroom.
Hotel not very close to main square, about 10-15 minutes walking but without stairs :) and worth to stay.

The staff is SUPER SUPER helpful and they have a great courtyard to relax and enjoy down time. Pick up from the airport was included and they brought us coca tea as soon as we got there. Breakfast was yummy for the Cusco area and the rooms were clean and nicely decorated. If your a light sleeper, the walls are on the thin so try to get the upstairs room and away from the courtyard. Not that I had problems sleeping after playing tourist for the day :D Its about a 5-10 min walk to the plaza de arms and 3 min walk to the main streets of san blas. Close enough to get to everything quickly and far enough where its peaceful!!

We stayed before our trekking trip. We liked this hostal, we had one of the new rooms at the back. it was very quiet, well off the street. the room was small but clean and well kept. Nice grounds with lots of lawn if you have time to relax! (we didn't) downside, was a few big tour groups staying at the same time.

We were lucky to find Inkarri Hostal, we didn't know what to expect, but from the first email to organize our booking they went out of their way to make sure that our stay was one to remember. The value was unreal! We payed around $60 I think for a family room which had 2 levels, it included breakfast, had a full kitchenette, table and chairs, big private bathroom...very roomy!! Some mornings the girls from the restaurant even brought the breakfast to our room so we could stay in our pjs. The owner himself gave us a lift to the airport as our taxi was delayed.... Service like that is not easy to find!! I will stay back with them every time I go back to Cusco and will definitely recommend it to everyone!!!!