Avoid at all costs.
The gentleman in-charge didn't have our full reservation upon arrival. I show the confirmation e-mail, and he says there is no reservation for 2 nights, and only has me for 9/5. Then, he tells me his son is the owner, and son handles Internet bookings, speaks english... so we can talk to him. He then shows me the reservation book, which has my name down for 9/5 only, and assigned to room #20. Then, he tells me room #20 hasn't checked out yet, so we'll have to wait. Again, fair enough since we arrived before the promised check-in.
A half hour goes by, and the occupants of room #20 return from town to the hostal (I saw them carry roomkey #20). The front desk man asks if they want to stay 1 more night, and they say yes, and then retire to their room. Room #20, right next to lobby. Red flag #1: staff gives away our room to someone else, when we were already in the books.
SUMMARY: I ask for receipt, he OKs me using dollars, calculator says 128 peruvian soles and he writes 130 on receipt, i ask for dollar translation on receipt, he tells me i'm a headache and asks me to leave hotel + go elsewhere.
Even for its price, it's certainly not worth anyone's time when the management treat you like a stray dog. I submitted a written complaint at the Tourism Office in the main plaza, and the staff there offered to join me + police to resolve it, but I declined. Honestly, we are foreigners in a South American country; nothing will be in our favor.