You are either in the ten walkable blocks of the village or out in an ayllu a few kilometres away, and the variable that actually matters is not the location but whether the room has heating for the cold nights at 2,400 m.
Village centre — Caracoles and the plaza
The adobe grid around Caracoles and the Plaza: agencies, restaurants, cash machines and the tour pick-up points are all within five minutes on foot, which counts when a geyser trip leaves at four in the morning. It is also the loudest part of town and the most expensive.
The ayllus — Solcor, Sequitor, Larache, Coyo
Old irrigated hamlets one to three kilometres out, where most of the mid-range and upper-end lodges sit among pepper and tamarugo trees. Quiet, dark skies from the doorstep, and a 20–30 minute walk or a short taxi into the village each evening.
Calama — the transit fallback
A mining city 100 km away holding the region's airport and long-distance bus terminal. Functional and cheaper if you land late or leave early, but it has none of San Pedro's reasons to exist.
Practical: heating, hot water and altitude
Nights are cold year-round and plenty of adobe rooms have no heating and solar-only hot water, so ask specifically before booking rather than on arrival. Give yourself a slow first day at 2,400 m before any tour that climbs above 4,000 m.