You can't beat that, hot springs right on the doorstep of Machu Picchu. It's no European spa, but the water is hot and the price is right.
Unless you come from the Pacific northwest, don't go to Peru for the beaches. Grey sand, huge Pacific breakers and really cold water. The beach looks pretty spectacular from atop the cliffs at Miraflores, but it's a case of "look, but don't touch".
If you HAVE to do a beach, take the bus north to Ancon from Lima.
http://www.enjoyperu.com/peru_travel_tours...icts-ancon.html