If you wanted the character, but with the location of the Caravelle you could consider the Continental (just over the road from the Caravelle) - perhaps a bit noisy with building work nearby. A few glossy pics at http://www.continentalhotel.com.vn/

I haven't stayed there since 1996, though! It was pretty bizarre then. $129 a night, but got upgraded to a room with a separate dining room. Two TVs and a video player and "libary" which consisted of one very obviously bootleg tape. Very friendly staff who couldn't do enough for you but at the same time couldn't do anything at all. No toothpaste - asked at reception and they suggested I buy some from a nearby shop!

I'm sure it's better now (pls someone confirm it is) ... it won't be as good on service as the Caravelle.... but I do miss those days.