Hotel Miamaka in Arequipa is one of the best hotels we've had in Peru (price/quality). We've paid 15 dollars including breakfast for a double room in 2003. The hotel is clean, modern, rather new and has very good service. My girlfriend was sick in the days that we were here. Every morning they made a cup of tea for her!!! She had to stay in the bed for a couple of days. The hotel is 3 blocks from the Plaza de Armas (to the right) when you turn left and walk out of the street there are different markets. (watch out at night.)