Most of the rooms are huge and comfortable, though the plumbing is diabolical so check the shower before you settle in. The location is remarkable, off Hamid Ghar Rd and with uninterrupted views of the Indus River, though it's a long walk from the bazaar. There is an OK restaurant, a very interesting mountaineering museum, and a tourist information desk.
PTDC K2 Motel
Karakoram Highway