The hotel has a lakeview but only from the roof top restaurant. If you want to be closer to the centre of Udaipur and the beautiful city palace then choose a different hotel. The Lake View Palace is opposite the Chunda Palace Hotel which is a 4*/5* hotel and every night I was staying at the Lake View there was a loud music event at the Chunda Palace which was very noisy. The wifi in my bedroom at the Lake View Palace was very weak/intermittent. The prices in the roof top restaurant were quite expensive compared to other restaurants nearby.
However, if you are on a tight budget and don`t mind staying away from the main tourist sites of Udaipur then the Lake View Palace might be for you - but there are many budget guesthouses/hotels much closer to the historic core of Udaipur where you can relax in a very atmospheric location.