Ah nuts! The place I stayed in 2001 would have been perfect, but I guess it's not around any longer. However, the hotel next door is still there. Hotel Fortuna - in a building built around 1300 - and the medieval lane it's on are the very definition of quaint!! ( In fact the lane is so narrow I couldn't get a picture of the hotel I stayed in, so I got a picture of Hotel Fortuna instead as it is on a corner:-) ) But, it's more upscale and more expensive than Piccolo Hotel where I stayed. In 2001 Fortuna cost between L135,000 and L188,000 (about $67 - $94US), but I saw a listing online (just now when I was double checking)of 69Euros.
Perugia is often overlooked or dismissed, but the old town on top of the hill is well worth seeing. Have fun in Italy!