I'll forewarn you - Aquas Calientes isn't a fantastic place. It reminded me of the city part of Niagra Falls or Old Las Vegas. Lots of souvenir shops and the like without lots of charm. If you can get over the fact that there are no cars in town, it's actually an interesting place to explore.
I stayed at the El Mapi Hotel
http://www.elmapihotel.com/. It was a decent refurbished property.
I also ate at the Cafe Inkaterra at the Machu Picchu Pueblo Lodge. This place was a bit more upmarket, but the food here is best for foodies. Fabulous quinoa salads and modern fusion food.
http://www.inkaterra.com/en/machu-picchu
Probably not necessary to stay at such nice places, since you're probably only going to be sleeping here overnight and spending all your time up the hill at the main event. They were included in our tour.
Book in advance!!