I was in Banaras last week and one of the hotels I checked out for accommodation was this hotel. Like many other small hotels, they too announce that non-AC rooms are not available and only AC rooms are available. AC room are generally 50%-100% more expensive. Just as I started walking out, the manager called me and tried to start a conversation that he would try to accommodate me, etc. This is a bad practice which these hotels indulge in. They try to sell you the more expensive rooms and if you start to leave, they negotiate and pretend to help you and accommodate you. I did not stay there but in another hotel.
This is a warning to all people, particularly foreigners who visit Varanasi.

We (family of 4, including two teenage kids) decided to stay at the Lara for its central location, which is 5 minutes from the mouth of the Vishwanath Gali (alleyway) and the Dasashwamedh Ghats (and the maze of galis that radiate from around there). The room (a 4-bed "cottage") was air-conditioned, large and clean. The bathroom had both Indian and western toilets, as well as a (non-functioning) bath tub and facilities for bathing with a bucket (Indian style). We did feel the lack of running hot water, though we were later told we could have "ordered" buckets of hot water. By the way, the room also had a small stove and cooking utensils, though we didn't use them.
The hotel offered several meal plans, including Continental Plan (breakfast only) and American plans (which included one of two other meals). While the breakfast was fine (good porridge, listed as "porgies" on the menu, as well as buttered toast and very sweet tea/coffee), we didn't enjoy the lunch/dinner options, which were generous but greasy vegetarian "thalis".
Overall, a good experience, especially for the location and the option to take short walks into the teeming and hot streets and then duck back into the air-conditioned cool of the room.

We arrived at the Lara after trying two really grotty hotels so the spacious room, reasonable cleanliness and friendly staff was a great relief. Very central, and the corner to get rickshaws and tuk tuks is only a two minute walk - much more convenient than the hotels in the maze of alleys near the ghats. We very much enjoyed the restaurant - which is pure vegetarian (no eggs).

The location of the hotel has advantages for visiting the Ghats and the Vishwanath Temple, though taking taxi or auto to hotel entrance in the evening is difficult. The attached restaurant is good and room service is average. Toilet needs to be cleaner and plumbing needs attention.