For the visitor there are three broad options of areas in which to stay.
1) In or near the old town - has the advantage of having all the historical sights on your doorstep - however you are then limited for evening entertainment unless you want a long tuktuk ride. However the two 'rooftop' restaurants overlooking the mosque are nearby.
2) Along Mall Road probably in one of the big and expensive chain hotels - you will be equidistant from the old town and the nightlife
3) In Gulberg or Defense - where you will having the nice restaurants and shopping on your doorstep, and are nearer the airport.
These tradeoffs are important because of Lahore's awful traffic, and you want to minimize the amount of (daytime especially) travel in the city. Sunday mornings are very quiet however and this is a good time to visit Mall Road / the old town.
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