Set on a ridge northeast of Bhaktapur, NAGARKOT (1950m) is no quaint hilltop village. The series of hotels is here for one reason only: the classic panorama of the Himalayas. While the view isn't as expansive as from Daman, and the area not half as interesting as Dhulikhel, it's easy to get to from Kathmandu and you don't have to stay in an expensive hotel to get a fantastic view from your window.
The first tourists are thought to have been a troop of Punjabi mercenaries recruited to defend the Valley against Prithvi Narayan's troops. Stationed at the now-vanished ridgetop fort, they quickly succumbed to the "mountain air", proving drunkenly incapable when the Gurkha invaders finally arrived. Since those times, numerous guesthouses have sprouted along some two kilometres of ridge, but the main attractions haven't changed much. Taking in the sunrise view, either from your hotel or the view tower further back along the ridge, is the standard activity. Many take the chance to just chill out, but there's a wealth of hiking and biking opportunities too. Since Nagarkot is located at a high point and easily reached on a good road, many people get a lift up and then hike or bike back down.