If you are thinking of including Lago di Garda in your Italy vacation, I highly recommend La Madrugada /hotel in Malcescine:
https://en.lamadrugadamalcesine.com/
It has nice views and is close to the lake, but about half the cost of a lakefront room at a hotel there. In the end, we were not able to actually stay there, but the owners were very kind and responsive during the booking process. It gets great reviews on Booking.com (you can book there but the owners prefer that you book directly with them).