When it comes to heritage lodging, Udaipur is world-famous for the Taj Lake Palace. But travelers don't have to take out a second mortgage just to enjoy the historic atmosphere of this city. Crafted from a pair of seventeenth-century havelis (private manors), Jagat Niwas Palace encircles a central courtyard. It is reached through a narrow archway from Jagdish Temple in the Old City, and once inside you will find just 29 charming rooms — the best have picturesque enclosed balconies views over Lake Pichola. The lakefront location also makes for pleasant dining, as the hotel restaurant is right on the shore.