The hot-air balloon ride begins in the twilight, at around 3 or 4 in the morning. So yes, it might sting a bit, but it's worth it.
A minibus will collect you from your hotel. Don't forget to give its name when booking, or the name of your boat if you're on a cruise.
Then watch the balloon being inflated. The balloon is first spread out on the ground and then inflated with the help of large fans. Finally, it is filled with hot air to straighten it out. An impressive technical feat to behold.