Hi. Ok This will be very brief (yet informative..dont worry!). Listing a few hotels available within main Shimla itself which are excellent choices if you are not in a position to live at the outskirts.
All reveiws are based on actual interaction with the property with respect to all its areas of function.
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Woodville Palace
If you are here then you are about 10 minutes WALKING distance from the mall. Right in the centre of town and you have access to most tourist spots. The exact network of roads which run around this property also house the Chief Minister’s Official residence and are sealed roads i.e only cars with special permission are allowed to ply , hence walking is unrestricted and not inconvenient.
Originally a British Raj Palace it is now , if i remember correctly, with the heritage group of Hotels , an established chain in India. Slightly on the expensive side but an experience in itself. Close to 28 rooms with all modern facilities and amenities. The grounds are on the smaller side but beautiful and green nevertheless. Tennis and Badminton courts.
On the other side i.e opp the direction to the Mall is an area called Chotta Shimla. It is essentially a small market offering lots of small places to eat and shops catering to daily needs. Its a sharp walk downhill , and where the market finishes the residential area begins with a colony called Brokhurst which houses Bungalows set between thick greenery and massive deodar trees. Well worth the walk which will be about 40 minutes , round trip.