The Posada del Monasterio Arequipa hotel has a good and a bad location at the same time, it is on a very nice street and just in front of the monastery. 

The hotel has descent infrastructure and I booked as an add on trip to Arequipa after my Machu Picchu tour.

The donwside is, there is a noisy dance club on the other side, and it is impossible to sleep if you get a room close to the club area, even tried with earphones. 

On weekdays it was ok, but weekends were impossible. If you stay here ask to get a room on the other side away from the club, if not stay elsewhere.