La Casona Inkaterra

A block block from the historic Plaza de Armas, the latest carbon-neutral property from Peruvian hotel group Inkaterra is secreted behind a massive green door on tiny Plazuela Las Nazarenas, which it shares with the famous Hotel Monasterio and the Museo de Arte Precolombino. It may be a sprout to Monasterio's beanstalk, but this discreet hotel's intimacy and dazzling restoration will make smaller-scale luxury the new Cuzco standard. The 11 rooms of the former conquistador's mansion have views of the plaza or open onto a charming courtyard. Crisp yet cozy, the suites nod to both Incan and colonial influences with antiques, handwoven blankets, and traditional thickly plastered beams crossing the high ceilings. Coca-leaf tea awaits guests to ward off soroche (altitude sickenss), but if it does kick in, the friendly cuzqueño staff has oxygen tanks on hand. In addition, the hotel offers trips to ruins, churches, markets, and a coca-leaf tea reading.