As one of Peru’s top business centers, Arequipa [1] has dozens of hotels, including many charming options under US$50 for a double, and more top-end options, including the beautiful casona of Casa Andina Private Collection Arequipa and the outstanding five-star Hotel Libertador.
Links:
[1] http://www.moon.com/destinations/peru/lake-titicaca-and-canyon-country/arequipa