We're big fans of Inkaterra's rustic boutique hotel located in the heart of Machu Picchu's Historical Sanctuary. So we were thrilled to learn about the opening of Inkaterra's La Casona Hotel in Cusco, a lovely gem that's the perfect base to explore the "Lost City of the Incas." (Cusco is the gateway town to Machu Picchu.) Built over the palace of Inca Manco Capac (founder of the Inca Empire), the 16th century manor house was beautifully restored as an 11-room hotel centered around a gorgeous courtyard. Showcasing an exciting mélange of Incan cultural tradition and contemporary comforts, La Casona is the the city's first luxury boutique hotel. Amenities include wireless Internet, private butler service, open fireplaces, spacious bathrooms, iPod docking stations, and a private spa. Plus, your stay is guaranteed to be 100 percent carbon neutral. Opening is scheduled for February 2008.