The Arequipa and the Colca Canyon region has just about as wide an array of hotels as one might expect for an area so diverse. 
Arequipa has something for every taste and budget. Many Arequipa hotels are based very close to the historical part of town, in the streets surrounding the Plaza de Armas and close to all of main landmarks. Some hotels in Arequipa offer lovely views of the spectacular scenery surrounding the city. If you're looking for help getting around and seeing the city, many hotels in Arequipa offer their own city tour service.
In the Colca Canyon hotels are mainly clustered around Chivay and Cabanaconde, or more remote options are available. In this area, many of the hotels come with an adjoining restaurant. There are some stunning countryside places to stay in the Colca Canyon, with facilities such as hot springs attached.