For a great upscale hotel try the Plaza Colon. It is located in Lima's main downtown square. I have been there and it is a fine hotel, 4* or better. For a budget hotel try the Hotel Central...located in front of the palace and it has a great view of the changing of the guards. Don't miss this very formal tradition. Miaflores and San Isidro are more affluent suburbs with lots of B&Bs and great cliff views of the ocean. Have a great trip!
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MRKEY