Can anyone recommend a great hotel in Lake Como, Italy area (Varenna, Bellagio, etc)?

In the "moderate" price range I would highly recommend the Hotel Florence, which is lakeside in Bellagio. If you click on my screen name, you will see a few references to it in prior threads concerning Lake Como area. We spent four days and nightsthere and it was terrific - family run, nice-size rooms with new baths, great service, nice lunches beside the lake. A great experience.

I can highly recommend Albergo Olivedo in Varenna. We stayed there last September, and had the most perfect time. If you go, ask for a balcony room. The hotel sits right on the lake, opposite the ferry dock, and the views are nothing short of spectacular! They are large rooms, with 2 sets of French doors, one of which accesses the small balcony, and are furnished with antiques. The floors are inlaid hardwood. The king-size beds don't have the most comfortable mattresses, but the bathrooms are all marble and very modern and large. There are no elevators, so be prepared to climb the stairs. Dinner is mandatory, but wonderful! And Laura, the owner/proprietor, is really a marvel to watch in action. She's everywhere, all day, and by the end of the stay, you feel you're part of her family. If we could ever get back, we'd definitely stay there again. You have a wonderful adventure ahead of you!
Joyce

The Belvedere in Bellagio.

We have also stayed at the Albergo Olivado (Varenna). We liked it so much we are planning to go back (This time for a week. The previous tip was just two nights).

I'd recommend either the DuLac in Varenna or the Belvedere in Bellagio.

I booked friends into the Du Lac in Varenna and they loved it. My daughter and son-in-law decided on the Bellavista in Menaggio and we've stayed at both Grand Hotel Menaggio and GH Victoria there and liked both.

We just spent 3 nights in June at the Albergo Milano Hotel in Varenna. So quiet and peaceful, directly facing the lake. Firm beds, a good breakfast (Bettina makes a great capucchino) Clean and spotless. No elevator however. You can check out their website at www.varenna.net. Hubby and I hope to make a trip again soon!