The hotel is located in Aguas Calientes, with NO cars, NO bikes, and NO means of public transportation. This was told to us by the staff at the hotel in Cusco (to travel light). I cannot imagine visiting Aguas Calientes with anything besides a backpack since it is all located on a hill.
This hotel is at the top of a hill, so be ready to walk... a lot. Thankfully, after a day in Cusco, we managed the altitude and did not get sick.
Anywhere you stay in Aguas Calientes is within walking distance from shops and restaurants, the bus stop to Machu Picchu, and the train station back to Cusco. This hotel is a good option (although high up from the center of the small town).
Overall: I would probably find a hotel closer to the center of town. five hours by train, and walking up that hill can be tiring for some.