The Hotel Pueblo, as visited in 1997, was not so much a hotel as it was a collection of small guest villas, clustered on various levels carved into a forested hillside. The reception area and central lodge were 50-75 feet above the railroad and river, and the guest rooms continued upward from there. The rooms furthest from the lodge required negotiating two or three (or more) flights of stone steps, but my own room was spacious and attractively furnished with native hardwood bed, chairs and table and Peruvian blankets and rugs.
The lodge contained a small bar and a restaurant capable of serving at least two mid-sized tour groups simultaneously. Food and service were more than adequate. My room and meals were included in a multi-day travel package, so I can’t advise on prices.
Hotel Pueblo had its own rail station, about a mile and a half from Puente Ruinos, the starting point for the trip up the mountain to the ruins themselves. You could walk a quarter-mile to the nearby village and take a bus from there. If you weren’t staying at the hotel, the train from Cuzco connected directly at Puente Ruinos with shuttle buses to the top of the mountain.
Some hotel details may have changed since my visit to Machu Picchu, but I doubt the cordiality of the staff there will have.