We stayed at Hilltop Udaipur in August 2010 first week.
First Udaipur: One of the most beautiful cities that I have ever been to. A must visit !!! If it rains, it is mesmerizing.
The hotel: It is on top of a hill with a beautiful view of Fateh Sagar lake. We had a lake facing room with a nice Jhoola ( swing) in it. My daughters loved it. The roof top bar ( though closed due to rains when we visited) provides a breathtaking view of the city and the lake. There is a small and beautiful garden at the lobby (read hill) level. The staff is very courteous and helpful.
The breakfast, though was part of package and was reasonably good, there was no typical Rajasthani food in the menu. This was a major let down. We couldnt find any transport from hotel to city ( though it is only a couple of kms away from city), so had to depend on full day taxi.
Apart from these two factors, the hotel is absolutely worth the money and is very highly recommended.