A hierarchical cloud infrastructure involving cloud, cluster, and node controllers is the most preferred deployment architecture by the cloud providers since it helps them to achieve the desired scalability and geographical distribution. In this architecture, the cloud controller indirectly controls a large number of node controllers through a few cluster controllers. A Virtual Machine (VM) placement algorithm, therefore, should provide for intelligent cluster selection before node selection. To the best of our knowledge, there is no VM placement algorithm available that has addressed this issue. In this paper, we propose a new VM placement algorithm that intelligently selects the appropriate cluster, and then a node inside the cluster. We use multi-criteria-decision-analysis (MCDA) technique for this purpose. Simulation results have confirmed the superior performance of our algorithm.