This hotel overlooks the River Elbe on one side and a pretty square of painted buildings on the other. We opted for the town view, which was cheaper (€80 for a double, including breakfast). Although the main street runs straight past the hotel, Lauenburg is not the sort of town that gets a lot of through traffic at night, so we got a good night's sleep.
The bathroom was on the small side - very narrow – but otherwise everything was fine. Breakfast was perfectly adequate. There is a locked bike shed on the corner by the river where your bike will be secure overnight if you stop here on your way along the Elbe Cycle Route.