The hostel is a tad difficult to find when arriving with public transport. When arriving at the main bus station, try to take a #2 bus (same side as bus station) to the North Gate of the old town, and walk 5 min from there. If using a taxi driver, get him to call River (owner) and he'll pick you up at the nearest gate. The old town of Lijiang is pedestrianised, and the hostel is in the quieter part of town (which was much appreciated!). The front door is locked (you'll get a key), so you need to ring the bell when arriving.
The rooms were clean, but not very spacious- it was a bit tight to "walk around the luggage" but the beds were very comfy. There is a large roof terrace with loads of space to use/ sit outside- which was lovely. They have washing machines and a drying area for your laundry on a hidden "roof top" as well. Free water coolers and free black tea 24hrs was provided. The towels were changed every second day.
River was great in giving tips, arranging taxis or transport for a whole day trip for us. You can hire bicycles as well. The best breakfast places are 15-20min walk away, but well worth the walk: Prague Cafe, N's kitchen and LaMu's. Ask River for directions. We'd stay here again and highly recommend it!!