Here is the recap of our trip to Peru:
 
( 8 Days)

Day 1: USA or Canada / Lima, Peru
Depart on a flight to Lima and transfer to your hotel. Miraflores Park Hotel

Day 2: Lima
This afternoon embark on a city tour beginning with a visit to Plaza Mayor, the official center of the city and the original site on which Lima was founded. Continue to the historic Cathedral, built in 1534 and an architectural marvel. From the Cathedral, walk past the Presidential Palace where the soldiers on guard offer an excellent photo opportunity. Then visit the church of San Francisco and its library collection of fine paintings and frescoes. Miraflores Park Hotel B

 
LIMA - I agree with guidebook's suggestions that you can see all there is to see in one day.  We stayed 2 nights in the Miraflores Park Hotel - very nice hotel in the best neighborhood of Lima. Worth the $ to upgrade to an oceanview room with great views of the Pacific coastline. Great service and nice rooftop pool.  Some interesting things to see in Lima, but if you are pressed for time you can skip it and fly into Cusco.  There's a nice oceanside shopping restaurant plaza within walking distance of the hotel.  We booked a driver through the hotel to take us to the major sites in the city.
 

Day 3: Lima / Cusco
Fly to Cusco, where afternoon sightseeing includes the city and nearby archaeological sites of Sacsayhuaman, Qenqo and Puka Pakara. Hotel Monasterio B

Hotel Monasterio is great - we booked a private tour through them for the major sites listed in the Sacred Valley.  A former monastery, it is very unique and very atmospheric.  After sightseeing or walking around Cusco, it feels like you enter another dimension when you walk through the doors.  Gregorian chants are piped in throughout the hotel, and the hotel has its own Spanish style chapel. 

http://www.monasterio.orient-express.com/web/ocus/ocus_a2a_home.jsp

Day 4: Cusco / Sacred Valley / Cusco
Explore the Sacred Valley of the Incas, with visits to Ollantaytambo, an Incan fortress-complex, and the local village of Pisac, known for its indigenous market. Lunch is at Huayocari Hacienda. Later, travel to Awanakancha, the breeding center of South American camelids, for a demonstration of ancient weaving techniques used to create Andean clothing. Hotel Monasterio B L

Day 5: Cusco / Machu Picchu
Board the Vistadome train to Machu Picchu, the "Lost City of the Incas," where a late morning arrival gives you time to begin your explorations of this breathtaking Incan citadel. Accompanied by your guide, explore the city's ruins and feel its pulse as you visualize the lives of the priests, craftsmen and servants who inhabited this seemingly uninhabitable citadel. Excavations at the site have revealed skeletons, artifacts and woolen clothing, but no gold. The same precision of assembled stones exists here as in other Incan sites. Overlooking the raging Urubamba River and discovered in a hidden tangle of vines and trees atop the mountain, the city of Machu Picchu will forever hold the secret of its destruction - the Incas left no written record. Machu Picchu Sanctuary Lodge B L D

Machu Picchu Sanctuary Lodge is nice, but very expensive at $1000 + per night for nice, but not outstanding ("panoramic view") rooms with all meals and drinks included (we enjoyed a nice $100 bottle of wine at dinner!).  We took "this is a once in a lifetime experience" rationale as we forked over the AE.  It is the only hotel at the top of Machu Picchu with only 17 rooms, I believe.  It is definitely nice to be there after the crowds leave and to wake up and have breakfast on your private patio overlooking MP. 

http://machupicchu.orient-express.com/web/omac/omac_a2a_home.jsp

Day 6: Machu Picchu / Cusco
It is said that Machu Picchu is a place of great spirituality, and there is no better time to experience a magical moment than at sunrise. Walk the pathways of Machu Picchu and explore its ruins before the crowds arrive. Return this afternoon to Cusco via the Vistadome train. Hotel Monasterio B L

Day 7: Cusco / Lima
Return to Lima where the remainder of the day is free to explore as you choose. Miraflores Park Hotel B

Day 8: Lima / USA or Canada
Transfer to the airport for your homebound flight. B

This program contains some active elements, and a minimum level of fitness is required.

CONSIDER AN UPGRADE
Hiram Bingham train to Macchu Picchu.

We took the Vistadome for the 3-1/2 hour trip to MP, the Chapins took the Hiram Bingham.  The HK train trip with all meals included cost about $550 per person, Vistadome was $120/pp which included a box lunch and drinks.  Vistadome was perfectly fine, though not luxurious, you'd have to ask the Chapins to see if the HK was worth the extra dosh.  I reserved the tickets through Peru Rail http://www.perurail.com/Frames_Pages/mainpage1.htm in advance (highly recommended), and they have a representative at the Hotel Monasterio where you can pick up the tickets.

All in all, a very memorable, picturesque and unforgettable trip.  Please let me know if you have any questions.

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