It looked like the only decent accomodation in Phalodi and, to be honest, the outside is not bad at all. The room also, despite the lack of windows, was kind of peculiar. That' s were the good part ends.
The room and the bathroom were desperately screaming for renovation. The restaurant was expensive and portions were offensively small. The service was rude and intrusive. There were noisy works going on most of the day.
But, worse of all, they tried several times to rip us off, adding non-existing services and taxes to our bill.
Avoid sleeping in Phalodi if you can!

My wife and I stayed at Lal Niwas in Phalodi in March. It was not a good stay.

The hotel is a converted Haveli in a largely deserted part of town. Reception is in a dark, dank room, and much of the hotel is of similar ambiance. We stayed in the "family suite," a room with low ceilings (and an even lower ceiling fan), crudely framed windows, a badly designed bathroom with a shower that didn't drain properly and a bed that was incredibly hard, even by the standards of Indian hotels. There was a guy who I referred to as our "minder" who hovered over us whenever we had a meal or a beer, and while he may have been trying to provide good service, in actuality he was very annoying.

All of this came for a price of something like $60, which was dramatically higher than merited.

Hotel options in this area are very limited, but even so we suggest that Lal Niwas be avoided.

We stayed in this Heritage Hotel on route from Jaisalmer to Jodhpur to see the cranes. The cranes are definately worth seeing but skip Phalodi. We booked the best room possible and although it initially looked impressive it soon became clear it was dirty as was the whole hotel and worst of all the sheets were really grotty and had probably seen more than one previous occupant . Luckily we carried our own sheets with us.

This place was also creepy, our room had no natural light and some of the staff gave us the creeps too. They obviously don't see that many tourists and are very prone to staring and hovering.

We also suspect we caught the dreaded TD here.

All in all I'd avoid.