Pizarro slept here
Last night I stayed in the Hotel Libertador whose main claim to fame is that it is built on Incan foundations and parts of the building date to the 16th century when it was occupied for a time by Pizarro. The claim is plausible as he certainly pillaged the temple next door.
The other contender for Cusco´s finest hotel is the more expensive Hotel Monasterio where you can get what I call a "Michael Jackson" room, a sealed room which is flooded with oxygen to help combat altitude sickness.
The Hotel Los Andes where I stayed most of the time was excellent.