Built on Incan foundations and located two blocks from the Plaza de Armas, the Hotel Monasterio is a hotel that seems to be doubling as a museum. One of the top hotels in South America, the building originally served as a colonial monastery. The structure itself is a work of art, including a beautiful chapel adorned with extraordinary gold ornaments. Each room has its own collection of antiques and artwork. Service is superb and the restaurants are some of the top in the city. Other hotels have imitated it and tried to out-do it over the years, but the Monasterio is still tough to beat in Cusco.