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 >USD60 per night and not common, but in large cities. 3 star hotels are a good compromise between price and quality and usually USD30-50. 2 and 1 star hotels are very cheap

You can find hostels for 5 USD. Some locals may try to divert you to more expensive hotels, where they get payed a comission.