If you’re looking for a dash of style, this comfortable Nepali-run three-star place near the Tromsikhang market is a good choice, with ornate Tibetan-style decor, a decent restaurant and a superb location in the old town. Rooms are dark and on the small side, but were recently renovated and come with modern bathrooms. Upper-floor rooms are brighter, but there's no lift.
A room tip: skip the pricier Potala-view rooms and grab a beer or breakfast on the rooftop for even better views.