I have been staying at the Albergue Churup, www.churup.com and really enjoy it. They have super clean well priced rooms. Its a great family run establishment. Jaun and his family make you feel right at home. If you are planing on climbing or treking here check in with them and they speak english and will take very good care of you.
Second Olaza's suggestion, Tito (the owner) is also really friendly and helpful, he has created a real family atmosphere too. The rooftop patio with free breakfast is spectacular, and best of all, he has (as of 2007) a total of 3 computers with internet that he allows guests to use, for free. For me, that was one of the greatest advantages on my days spent in town Zarela's across the street is good too, those 3 hotels are the most popular with climbers.
I had been staying at Ablergue Churup in the bunk rooms for approx. a week in between visiting the mountains. I loved the place but last night, upon my return from Pisco, they did not have my bed even though I had a reservation. So they looked for what could appear to be an empty bed for me in one of the other dorm rooms and booked me there. After just about falling asleep, another client entered the room and said that I was sleeping in his bed! I demanded one of the private rooms after much discussion and did ultimately get a bed. The owners were quite nasty to me the next day as I left to find another place to stay.
This is not a single incident as the same thing happened to another climber the week earlier and I am now finding out it is quite common practice there. No help from the staff, especially the older parents. Clueless.
Apparently, they do not consider a reservation a reservation. Whenever someone walks in, they look for what appears to be an empy bed and book it! I also heard first hand that this happened for one of the private rooms.
Lesson: You can not depend on this place to keep your reservation and you may find yourself without a place to sleep after a long day climbing. Ok, it is S.A. but, as a repeat customer, I would expect to be treated better. Sad, as otherwise, I would recommend this B&B/hostel.
A gang of us stayed at Olazas in 2004 and really enjoyed it. Tito arranged transport to the trailhead, mules and a camp cook. All great.
When we got back from the mountain, the rooms we had reserved had been given to someone else and we were farmed off to another place that was shite. Pity, because until that point they were really winning friends. Huaraz though, great place!!