This section of the Sacred Valley is attracting a host of hoteliers and developers, who all seem intent on adding new country luxury resort hotels -- a sure sign of the region's growing importance and affluence, at least in terms of foreign travelers. A cheaper alternative to the more upscale hotels reviewed here is the pleasant and good-value, if rather generic, Posada Las 3 Marías, Jr. Zavala 307, Urubamba (tel. 084/201-006; posada3marias@yahoo.com). It's a modern house in the center of town with gardens and seven large rooms for a relatively modest price ($30/£15 double).