As upmarket as Cabanaconde gets, Kuntur Wassi is rather charming. It's built into the hillside above town, with stone bathrooms, trapezoidal windows overlooking the gardens and a nouveau-rustic feel. Suites have enormous bathtubs. There’s also a bar, restaurant, library, laundry and foreign-currency exchange. It serves top-notch city-standard food.
Facing the church on the Plaza de Armas, it's on the street on the lower right. There is an office for reservations in central Arequipa at Jerusalén 132B.