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Nagarkot or Dhulikhel?

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WIth only 5 nights in Nepal we want to see what we can of the Katmandu Valley but spend a couple of days in an area where we can bike or hike for half/whole day excursion. I'd like to experience a small town as well. I've scratched Chitwan because of time constraints and I don't want to spend all my time in transport. Both Nagarkot and Dhulikhel are a short distance from Katmandu, both have great mountain views, but which is better? What about hotels? Any other suggestions? I appreciate advice and thanks so much.

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