My wife and I are looking for a place to go in Taiwan where you feel like you in a hotel that does not give you a Taiwanese feeling! We want to go to a hotel that is up to a Western standard and have food that is Western style. Money is not really a problem. What about Sun Moon Lake? What are the hotels like there? Can you get western food that is really western food? We do not have a car so what about transportation to get around? Are there any other places to go that are similar in Taiwan?
Well we recently stayed at this place down on the lake:
http://www.dellago.com.tw/EN/index.php
It wasn’t bad in terms of the room, service etc. However we only had the breakfast buffet there and it was a mixture of Chinese and Western food. Not great, but OK, but perhpas not what you are looking for. The location is good as it is right on the lake.
TripAdvisor review:
http://www.tripadvisor.com/Hotel_Review-g304160-d1122710-Reviews-Hotel_Del_Lago-Nantou.html
The Lalu may well be more likely what you are after in terms of 5 Star hotels. We did try to go and have a drink there, but the security people were a bit officious so we didn’t bother. It is expensive, however dining wise is also doesn’t seem to be what you are looking for.
http://www.thelalu.com.tw/en/menu_e.htm
The TripAdivisor reviews are pretty mixed though:
Getting around is not really a problem as there are a number of local bus services. Other eating options are still very localized and touristy so that may not be to your taste either. We did find a little coffee shop style place up near the Lalu hotel that done reasonable pasta etc.
Sun Moon Lake will be more difficult these days and it will only get worse. Their tourism now is geared almost exclusively to tour groups from China.
I’d say the Lalu would be about the closest you’ll get in that region. Look to be spending NT$20k for a room, minimum, for a quite upmarket doss that’s already looking pretty ragged around the edges and down-at-heel. It’s described as a “six-star hotel” although its not clear who is handing out the stars. Probably the Lalu management. 
Food is high quality Chinese, or used to be.
There are only a few hotels in Taipei like this. Hyatt, Sherwood etc. Sun Moon lake is definitely going to be the Taiwan experience.
Yes, SML is really Chinese style. The best hotel is the LaLu (from about NT$12,000 with only breakfast included); second best is Fleur de Chine (about NT$12,000 including 3 meals).
I like the style of the LaLu more. The room we had at Fleur de Chine was Japanese style. That means they don’t give you any furniture. 
LaLu is closer to the main town, but if you don’t want Chinese style, being closer may be a negative.
I wouldn’t stay at either one if I were footin’ the bill, but I’m a bit of a cheapskate when it comes to accomodation.
I have been to Sun Moon Lake a few times recently, and it has taken a turn for the horrible. Gondola lift, packed with speedboats, Chinese tourists busy literally pushing everybody away when they snap pictures - I can’t see why anywhere would even think about going.