A multitude of hotels are available in Khandala to suit every budget and pocket size. The MTDC resort is located at Karla (a few kms away) but savvy travellers to Lonavala and Khandala stay in hotels in Khandala as it offers beautiful views, is the quieter of the two and has far less traffic.
Alternatively try and rent out a bungalow, though it is very possible this option might be a little expensive.
Try and get one with a good view.
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