If you want to spend little money and stay in a clean place 4 blocks from the main square in Arequipa, and 3 blocks from San Camilo Market. We can recommend you The Tourist House (Alvarez Thomas 435, phone: 054-284028).
It’s an old house with very high ceilings and spacious rooms.
It also has a clean and safe place to leave your luggage while yo go to the Colca Canyon.