In Machu Picchu Pueblo (formerly known as Aguas Calientes), we stay at the beautiful Inkaterra Machu Picchu Pueblo Hotel. Set within 12 acres, the hotel is reminiscent of an Andean-style village, with stone pathways linking the main buildings to the guest rooms, housed in 85 whitewashed cottages (or 'casitas'). The hotel has two restaurants and a bar, all of which offer wonderful views over the Urubamba River. There is a gift shop selling local crafts and souvenirs and a spa offering a range of treatments and therapies (pay locally). The guest rooms are beautifully decorated in typical Andean style and feature a room heater, a dining area and thick alpaca blankets on the beds.