This is the perfect place to stay while in Yangshuo. It is located within walking distance to the busy West Street and the popular walking street where you can find street vendors, good food, and tour guides. The hostel staff are very friendly, and can speak English (which is a plus for those of us who have trouble speaking Chinese). The rates are very low, and room sizes range from a 6-bed mixed dorm to a twin private.
The hostel itself is clean and quiet. The decorations are fun and funky. My favorite part about the hostel was the open invitation to paint the walls. The staff keep paints available for aspiring artists. If they like your work, they may even keep it up. The views from the roof are spectacular, especially early in the morning when you can watch the fog curling off the river and around the surrounding mountains. You can also participate in a weekly BBQ event hosted by the staff.
I loved staying here, and I would certainly recommend it to other travelers.