Cusco caught the eye of international travelers with the discovery of Machu Picchu in 1911. Hostels were constructed in canchas, which are old communal housing blocks where individual houses (now rooms) surrounded a central courtyard that is accessed by one main entrance. Backpackers would use Cusco as their taking-off point for visiting Machu Picchu. Today, boutique hotels are popping up everywhere as more sophisticated travelers are discovering the area. We recommend that travelers stay in Cusco to explore the city and the immediate surroundings, and enjoy the restaurants and  nightlife. However, if you plan to visit Machu Picchu and the Sacred Valley, we highly recommend basing yourself in the Sacred Valley itself.