The Fort Resort is probably the best place to stay in Nagarkot. There's a sign that says it's 2000 m above sea level -- I'm not sure if that makes it the highest hotel in the world, but it's pretty high up there that breathing becomes a liiiiiittle bit difficult if you climb up the stairs to the roof too fast!
The daytime view from the roof is excellent and the food is quite good. The staff are friendly and for that one night we were there, they doubled up as entertainers... playing and singing Nepali music. One fellow was particularly nimble and did some wild moves that looked like a cossack dance by Jet Li.
As it can get quite cold at night, you may want to bring along some thick woolies, although the duvet and blankets are adequate enough to keep you warm while you sleep.
When you book rooms, you may want to book the ones that face the Great Himalayan Range. I forgot what room number I stayed in, but the view was superb.
Unique Quality: Great view of the Himalaya Range... when the clouds clear!
Naldum - 8, Nagarkot
Mahankal Temple, Nagarkot
Windy Hills, Nagarkot
P.O. Box 3004, Lazimpat, KTM, Nagarkot
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Address: P.O. Box 3004, Lazimpat, KTM, Nagarkot, Nepal