Here are highly recommended places to stay in Kandy, grouped by style and with a short note on why each is popular:

Luxury / riverside

• Cinnamon Citadel Kandy — riverside setting, large pool and river-view rooms; good for a restful base close to the city. (cinnamonhotels.com)
• Jetwing Kandy Gallery — contemporary luxury, suites and butler service, set by the Mahaweli River with panoramic hill views. (jetwinghotels.com)
• Mahaweli Reach Hotel — long-established five‑star on the Mahaweli River; strong local experiences (river cruises, gardens). (mahaweli.com)

Boutique / heritage

• The Kandy House — restored 19th‑century manor turned boutique hotel (very intimate, romantic, heritage interiors). (thetimes.co.uk)
• The Manor House (Mansion Nugawela) — historic walauwa converted to a small luxury hotel outside central Kandy. (en.wikipedia.org)

Central / convenient for sightseeing

• The Radh Hotel — modern boutique property very close to the Temple of the Tooth and Kandy Lake (easy walking access to main attractions). (booking.com)
• Hotel Suisse — heritage, mid‑range hotel near the city center with a long history and decent facilities. (en.wikipedia.org)
• Queen’s Hotel, Kandy — classic colonial hotel right in the city centre, popular for its history and location by the lake. (en.wikipedia.org)

Value / hillside options

• Earl’s Regent / Earl’s Regency (Earl’s Hotels group) — several properties in and around Kandy offering reliable mid‑to‑upscale rooms and good views from hillside locations. (earlshotels.com)

Quick tips

• If you want to be within walking distance of the Temple of the Tooth, Kandy Lake and museums stay in the city‑centre/lake area. For quieter, greener stays choose riverside or hillside hotels (Aniwatte/Hanthana/Peradeniya areas). (lodestartravelguide.com)
• Book early if you’ll visit during festival season (Esala Perahera in July/August) — central hotels sell out fast. (serendiptrails.com)

If you tell me your travel dates, budget, and whether you prefer central (walkable) or peaceful/riverside/hilltop stays, I can shortlist 2–3 best fits and include approximate rates and booking links.