Hotels in Peru are very common and fairly cheap. They range from 1 - 5 stars. 5 star hotels are normally for package tourism or business travel, and very uncommon outside of Lima. 4 star hotels are usually a bit on the expensive side (>US$60 per night) and not common, but in large cities. 3 star hotels are a good compromise between price and quality and usually US$30-50. 2 and 1 star hotels are very cheap (<US$30), but don't expect hot water or a particularly safe neighborhood.
In many cities there are hotels in residential areas, but they are not tourist hotels but "couples" rooms for lovers. They are usually signed as "Hostel", which can confuse the unaware traveller thinking it was for backpackers.
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