Staying a few days in Urubamba makes great sense if you are flying in from lower altitudes. As its a bit lower than Cusco it gives you a chance to get used to the altitude before attempting Machu Picchu or exploring Cusco.

The hostel, at an incredibly cheap US$18 per night, was fantastic value for money. Michael Holberton, (an Australian) met us at the airport in Cusco. We were made feel very welcome by everyone. Although unspectacular from the street , once through the gates you are transported to a beautiful peaceful garden. Our room was simple, fresh and clean with had private facilities and incredibly, at this price, serviced daily. We were served breakfast, at small extra cost, by the young resident family who look after the place. While Michael and Raul speak English, this couple have no English, so having a little Spanish is useful, but not imperitive.

Urubamba is a nice little town with a market and a main square but not a tourist destination in itself. We felt very safe walking around both day and night - although a ride on a motor taxi is great fun and also recommended. We loved the restaurant Huacati and ate there a number of times. I would also recommend having a coffee in Cafe Cusco overlooking the main square, where you can sit in the window upstairs and just watch life go by.

There are many things to explore in the surrounding area. The Sunday market and Incan temple, (now a church), in Chinchero are well worth a visit. So are the saltmines at Maras and Incan agricultural experiment at Moray. The owner of the hostel, Raul, is very helful and will organise a reliable, safe taxi driver to visit these places. We also hired Michael's immaculately maintained bicycles and rode out to the next couple of villages. This is a great way to see the countryside. (I'm 60). There are also a lot more challenging rides available for the very fit.

There are also walks you can do in the area. We got a taxi up to the end of the road past a village called Chicun and then walked back to Urubamba, passing people working on their farms like scenes from an old nursery rhyme. Again if you are young and fit you can walk futher up this valley to the glacier.

Michael was able to pre-book tickets for us on the vistodome train from Urubamba to Aguas Calientes for us. We had the best seats on the train - (1 and 2) right at the front. The station is just a short inexpensive 2 minute ride in a motor taxi from the hostel.

We stayed for three nights at Macha Wasi (really the Hospedaje los Jardines). We found it to be a good value and convenient for exploring the Sacred Valley. It’s sort of difficult to explain but the hotel is a partnership between Australian Michael Holberton, who had owned another property and was providing bike tours of the Sacred Valley, and the owner of the hospedaje, a local named Raul. You can reserve it through the Macha Wasi website (www.machawasi.com) or directly from the owner once you get to Urubamba.

The grounds are lovely and quiet, with flowers everywhere. Rooms are basic but clean, and good for the price (we paid $18/night for our stay for a double room with a bathroom). Michael was very helpful in arranging our trip: he met us at the airport in Cusco, picked up our train tickets to Machu Picchu, and arranged for a half-day mountain biking excursion (more difficult than advertised, perhaps because it was our first full day at altitude, but worth it for the scenery and the long downhill portions of the trail).

The staff at the hotel was very friendly, and the proprietor, Raul, spoke good English and was helpful and hospitable. For us the main attraction was the chance to stay in Urubamba, the town at the midpoint of the Sacred Valley. There's not much of historical interest, but the town is quiet and friendly and was refreshingly free of tourists, even in August (especially compared to nearby Oyantaytambo). There are two excellent gourmet restaurants within walking distance of the hospedaje -- Tres Keros and Huacatay. Both were among the best that we visited in Peru.

Overall, affordable, pleasant, and a good base for exploring the Sacred Valley.