Stick to the coast
Despite its massive size, there are only three neighborhoods in Lima that have decent lodging options. Lima is a giant, sprawling city and taxis are relatively expensive, so stick to the areas around Miraflores, San Isidro and Barranco for nice places. The center of Lima does have some good options, but it’s just nicer the closer you get to the coastline.
There are options for all budgets and small hostels and boutique places are increasingly easier to find as more and more sign up for online search engines like Booking.com and AirBnb.
Look for lodging in the areas where you plan to spend most of your time. If you’re a foodie, look for a place to stay near where you plan to have dinner, so you’re not traveling far at night.
Unfortunately, I don’t have any first-person hotel recommendations for Lima yet.