Lima may be a bit of a shock when you first arrive, as the airport is located in Callao which is a gritty district. But don't be put off, the city has a lot to offer including excellent food (see below).

I can't comment on either of the hotels you mention. In my experience if you're looking for the top end, try the Marriott in Miraflores (on the Malecón), or the Swissotel in San Isidro. Both are excellent.

A recommended more modest hotel is Las Palmeras, on Avenida Las Palmeras in San Isidro, about 5 minutes walk from the Swissotel and just around the corner from a bunch of good restaurants on Av. Dos de Mayo. Last time I stayed there (about two years ago) I think I paid US$65 per night including internet access, and the rooms are large and clean.

LAN shares a lounge in the int'l departures area with AA, DL, AC, etc. It's a decent lounge although it gets crowded. The highlight, for me at least, is the self serve fresh-squeezed orange juice machine.

Peruvian cuisine is one of the world's best and is practically unknown outside of Peru. When in Lima I highly recommend you try a seafood lunch, which may or may not include the traditional cebiche. There are many excellent restaurants to choose from; my favourites include La Mar (on Av. La Mar in Miraflores), Pescados Capitales (also on Av. La Mar), and Kapallaq (on Petit Thouars). Also the chains like Segundo Muelle offer good fare.

For dinner, again there is an endless variety of good restaurants to choose from. My favourite is La Gloria in Miraflores. It's an intimate place (which is to say, small and often crowded) with great food. Also Astrid y Gastón in Miraflores is good, and if you want good pizza in with a great atmosphere try La Antica, there are several around town including one on Dos de Mayo around the corner from Las Palmeras.

Enjoy!