Lima Centro has a handful of hotels and budget inns, but most people head out to the residential neighborhoods of Miraflores, San Isidro, and, to a growing extent, Barranco. San Isidro is the prime business district of Lima and full of hotels primarily, if not exclusively, designed for business and luxury travelers. These barrios (San Isidro in particular) have less in the way of official sights, but they are more convenient for dining, nightlife, and shopping, and probably safer, if not necessarily much quieter.
Hotel rates in Lima are the highest in the country, with the exception of some high-end lodges in Cusco and near Machu Picchu. There are plenty of mid-range and budget choices, although comparatively few have the charm of affordable hostales in other cities. Particularly at the top echelon, hotels tack on taxes and service charges to quoted rates, whereas most moderate and less-expensive inns quote rates that already include all taxes and service charges. Be on the lookout for any hotel that tries to charge you the 19% IGV (sales tax) on the basic room rate in addition to a 10% service charge, though; foreigners and nonresidents with the passport to prove it are exempt from the IGV (but not the service charge). Most hostales in Lima—unlike in Cusco, Arequipa, and a few other highland towns—do feature reliable 24-hour hot water.
Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.