This hotel sits in a convenient location, walking distance to nearly everything you'll want to see in town, such as Alpaca World (Mundo Alpaca), where you can learn just about everything alpaca.
Beware - the rooms in the hotel with windows onto the atrium can get very hot and there is no air conditioning, or even a fan to mitigate the heat. We asked for a fan and they switched us a room with a street view and it was much more pleasant in spite of the street noise.
The breakfast buffet is wonderful, with excellent options, including made-to-order eggs, and the view from the roof-top cafe is compelling, especially if you get there early and watch the shadows of the mountains recede across the town as the sun comes up.
One nearby attraction we recommend is the Monastery of Santa Catalina, which was consecrated in 1579, and now gives tours. It's behind large walls, like a little city within a city. We walked by several times without even knowing it was there, but then we saw a line for tickets and investigated. The convent was where well-to-do families sent daughters who weren't betrothed by the age of 12 or 14, and from that point on they were segregated from the world and their former lives. The tour guide is well worth the small fee to get a real sense of what those girls' lives were like.
The hotel can arrange trips out of town, to Colca Canyon for instance, but unfortunately when we wanted to go, no English language tour guides were available for the trip we wanted.