Budget
Regale Internet Inn
The owner, Malik, is a former journalist who can show you some amazing off-the-wall stuff in the city, including weekly trips to Shah Jamal on Thursday nights. It's slightly expensive for what it is, but pretty much the best option in town and worth it for the security and to meet other travelers.It is down an alley and upstairs, behind H. Karim Busch & Sons supermarket. They are pretty good at responding online bookings and often update their blog posts.
There are scores of options for travelers. If you feel like staying on budget there are some fairly crowded and over-priced options near the train station, which is in an overwhelmingly busy and chaotic part of the city - not for the faint-hearted. Westerners will often need to bargain if they wish to receive a fair price.
Midrange
Shalimar Hotel
Ambassador Hotel
Alpine Hotel
Windmills Hotel
Top end
Radisson Hotel Lahore at the Royal Palm
Adjacent to the Royal Palm Golf & Country Club, opening 2009.