I have booked this cute little hotel on booking.com and it is a bargain at on USD25 per night including breakfast, which is served on the roof terrace with a gorgeous view of the city below.

Cusco’s highest point is 3500m above sea level and you can feel it – altitude tablets are highly recommended which I take and am safe.
My room, on the 6th floor (with elevator) is adequate for the price and has a double bed and ensuite bathroom.

Breakfast the next day is simple but fine and even comes with a scrambled or fried egg to order.
No complaints and I’ll be back for 1 more night after my 2 days at Machu Picchu.