Varenna Hotel

Alberto Milano, while a nice hotel, is not directly on the lake. You will need to climb stairs to get there. Hotel du Lac is directly on the waterfront, as is Alberto Olivedo and Villa Toretta, where my husband and I stayed a few years ago. Villa Toretta has a lovely small garden overlooking the lake.

Hotel du Lac!!! We were there for 4 nights in May. What a great experience! The hostess, Tatiana, was the best on our whole 18 day trip. We had paid for a room with a balcony, and it was magical to open the French doors to that view! The breakfast was also the best of our trip., even included scrambled eggs and bacon. The breakfast room is like a Florida room, completely enclosed by windows that overlook the lake. Adjacent to that is an open terrace if you want to have breakfast (or lunch) outside. The room lacked nothing. The hotel is situated next to the shore so it is more of a level walk to the cafes and ferry dock. Getting to the hotel from the train station is a hike, so you might want to consider a taxi. We hoofed it and were pooped when we arrived.
Be sure to book early if this is your choice!

Here is another vote for Hotel du Lac. Unfortunately we did not stay there but it is beautiful and nicely located. We made the mistake of staying at Albergo Olivedo and it was noisy, had awful beds, and lots of stairs to access the rooms.

Another vote for Hotel du Lac. As previously stated, it is right on lake. There is an opportunity to walk along the lakefront at an even level, past restaurants with lovely patios and also the promenade and get to the boats which will take you around the lake to other towns. I do not remember the price we paid. We went in May too but unfortunately hit a rainy patch which limited our ability to sit outside unless under an awning.