Road conditions are very good. I had my last trip in November 2009 in the same areas and I was expecting almost similar conditions from Balakot to Naran. But it was a very pleasant surprise for me that road conditions have improved significantly. Previously, road condition from Balakot to Naran was bad almost 40% carpeted and ready and 60% broken in patches. But now, I would say from Balakot to Kaghan is 95% is good and from Kaghan to Naran its almost 25 kilometers is bad. Its 30% good and 70% bad but still able to drive and not harmful for the cars. I mean its not that big stones. I saw a couple of landslides but still the road was open and work is going on with a rapid speed on this road as its now going to be an alternate route for the Karakoram highway.
Previously, from naran to lulusar we could not drive on our car but this time, I was able to drive my Margalla till Babusar pass. Road from Naran to Jhalkad is very good. 85% good and 15% bad patches. From Jhalkad to Lulusar lake its bad 30% good 70% bad but again driveable and recomended for the cars.
Road from Lulusar lake to Babusar pass is very very bad. Although work is going on rapidly on the road and Its a 66feet wide road but It had those big bumps and stones which is not at all recomended by cars. You can reach untill Babusar pass by car but You need to be extra careful as your car can hit the bottom anytime anywhere. Although I drive untill Babusar pass because I was looking for an adventure but just to give you guys an idea, I drive this 25 kms in almost 2 hours.
Hotels are asking sky high rates and have nothing special just ordinary rooms and not good services. Previously we stayed at a hotel in 1500 and this time the same were demanding 4000. Similarly good hotels were demanding around 5000,6000 PKR for a night stay. But I decided the other way. I stayed in a hotel which is around 1 kilometer before Naran. There were some advantages for staying in that hotel. First, Its located directly on the river bank, secondly the rates were way too cheap and rooms were good. Play groud for kids and most of all It had all natural views and no WROOM WROOM sounds at day or night as Naran has got very commercial nowadays. We people go there to enjoy natural beauty and if we find the same hassle of traffic and smoke of the cars and masses of people then that is no use of me.
So you can get a good bargain rates. A normal room for a family of 2 adults and 2 kids, you can find in 1500 including hot water and other stuff.
Hope this will help you guys.