What the Imperial Palace lacks in comforts, they make up for in very warm and hospitable service. Over the course of two weeks, I and two friends made Cusco our base, and the Imperial Palace was our home away from home. All the help staff was exceedingly friendly and helpful. We received personalized care - tea delivered to our room when we arrived, porterage of our bags up and down the stairs, and - eventually - hugs and kisses from the staff when we would come downstairs in the morning for the breakfast (included).
Just bear a few things in mind - at the time I was there, there was no English-speaker on staff. The hotel, itself is VERY basic - twin sized beds, NO heating, fluorescent lighting, and the water pressure/hot water availability seemed to vary from room to room. This is what I would consider a budget property, with a triple costing $40/nt, even if I think it's classified in the mid-range hotel. If you want a more modern, Westernized hotel, I would suggest looking elsewhere. However, if you are a seasoned budget traveler who would appreciate an authentic atmosphere and a friendly informality, then this is the place for you.