Think of this more as a boutique hotel than a hostel. It was by far the nicest place we stayed (on a budget) in Peru. The views are quite good, and the building itself is very attractive. It is also spotlessly clean, and we saw staff taking care of the place every day (repainting, cleaning, weeding, etc).
We booked online and had some trouble paying the deposit but ended up getting it to work through Western Union. Paid the remainder in US cash upon arrival. Staff was always available and helpful during our stay. Most of them spoke English quite well. Breakfast was consistently bread, tea, juice, fruit & yogurt, and an egg. Tasty & adequate.
The bedroom & bathroom were cozy and clean. It was a little cold at night so we rented the electric space heater for $3/day. I don't think it did much to warm the room, but it was nice to stand by after a shower!
The location is very good - just a 5 minute walk to the Plaza de Armas. Lots of good restaurants nearby (Jack's Cafe is literally 30 seconds away). Easy walking to all the other attractions (the mercado, museums, the cathedral, etc).
Bottom line: a comfortable, value-priced place to stay with easy access to all the downtown historical attractions.More