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There are two options in Varanasi: you can stay near the water, where most of the lodgings are smaller and right in the midst of the action; or you can stay in the Cantonment area, about a 20-minute rickshaw ride away, where the more established, larger hotels are located. The latter area has less character, but it's definitely quieter and less chaotic.
Still the residence of a well-to-do family, this guesthouse has small, beautiful rooms with quirky charm, and classical Indian concerts are often held here. There is a great veranda overlooking the river and Assi Ghat, and inside, there is a Shaiva shrine and 14 guestrooms. Delicious dinners, served under a galaxy of lamps and chandeliers, are Brahmin-style vegetarian. Book months ahead for peak season.
In this century-old building on Assi Ghat, rooms are styled after Indian states—Gujarat (brightly colored drapes studded with mirror work), Rajasthan (elaborately carved doors and furnishings), and Assam (lots of bamboo). All delivering modern comforts, rooms at the front have a great view of the ghat, while others are quieter. The long, airy lobby is a great place to relax with tea, while the multi-cuisine rooftop restaurant has live classical music in the evenings (not during summer) and a good view of the Ganges.
This hotel stands close to popular sights like Ramnagar Fort and the PT Deen Dayal Upadhyay railway station, but about 8 km (5 miles) away from the ghats---which makes it the ideal base if you want to cover the city beyond the Ganges. The offerings are modest but fulfilling, with a pool, a multi-cuisine restaurant called Masala Root, and Jacuzzis in the suites.
