acc to my experience best and most expensive hotel in Murree is Shangrila. Its located in peaceful place, if u r coming from express highway, turn towards Lawrence college, then cross Lawrence college and Punjab Govt rest house and there u will find Shangrilla Hotel. Its colonial style hotel but very well furnished and luxurious rooms, real wood flooring, centrally heated, nice view especially from parking floor corner room, which is double in size and rate but i always prefer that.
The hotel has a very artistically decorated sheesha cafe, a coffee bar, children swings and excellent restaurant.