The Belmond Sanctuary Lodge is the only hotel situated next to Machu Picchu. The architects used to stay here when excavating the ruins next door. I had the pleasure of staying two nights in this very special place.
Ambiance/Decor
The lodge is small with only ~31 rooms. It resembles a very humble and cabin like feel. The design is simple and not luxurious in the modern sense, but the amenities and location are what really make this place unique. The rooms and bathrooms are very small, but I am okay with that; realistically, you want to maximize your time outside. I definitely recommend getting a room with an outside terrace as you can enjoy the views of the Andes. This very serene and tranquil space really allows you to feel integrated with nature. They even have their own orchid garden with views of Huayna Pichu and the Inca ruins. During dry season, you can get massages with an unobstructed view of the Andes.
Service
The service was impeccable. Most notably, when you arrive and depart. The only way to get to the hotel is via bus from Aguas Calientes. They have a post in that town where they will take your luggage so that you can ride freely or even explore the small town before heading up to Machu Picchu. When you arrive, your luggage will be waiting for you. Vice versa, when you depart, your luggage will be waiting for you next to the train station. The staff is incredibly friendly. At 6:00pm, they have Pisco sour classes every night; at dinner, they even have Peruvian flute players entertaining the diners.
Food
Obviously, if you stay here, you have to eat at the hotel as there is nothing else in the area. The food overall is very fresh and safe. One of my concerns was getting food poisoning, but you can trust the Belmond hotels. I believe the water pipes are all filtered. I ate fresh salads and ceviche with zero issues. The food was tasty and I think resembled authentic Peruvian flavors? I can't be sure. Most notably, the Andean potato tasting at dinner was very special; I didn't know that there were thousands of varieties of potatoes in Peru!
Reservation
You should definitely reserve as far back as possible. I went during low season so it was easier to secure a room, however, during high season I think you should look at least 9-12 months in advance.
Cost
It is not cheap. I stayed in the deluxe room with a terrace. Depending on when you go, it can range from ~$1,300 to ~$1,800 a night. I think starting rate is ~$800 a night for a standard room. But honestly, if you can afford to even stay there, then you definitely get the room with a terrace. Some people have mixed opinions, but I think the terrace is worth it. Staying here is truly a special experience that you'll likely do only once. The location also allows you to maximize your time at Machu Picchu, as it is literally a 5-minute walk from the hotel.