This beautifully restored mansion at the heart of the bazaar offers charming rooms decorated with Buddhist and Newari art, set around a terracotta terrace facing the mountains. Take your pick from views of mountains or captivating streetscapes. Some rooms are on the cosy side (and watch your head!), but newer ones are spacious with private bathrooms and balconies. All have beautiful woodwork.
If the hotel is full, you will probably be referred to Panche Baja, a restored building at the northeast end of the square run by the same owners. It's also long on historic character, but lacks the views of its sibling.