If you can find it, you'll like it
Forget the Chinglish name above - I believe it's called the 'Hutong Inn'. And each time I visit Beijing I usually stay at the Hutong Inn. It's a funky little place that is almost impossible to reach by cab. Persevere with the taxi driver / Assure him you are right / A Chinese map and address is always helpful. Basic directions - at the end of the touristy Nanluoguxiang it is nearly opposite - walk backwards (yup), towards Andingmen station again about half a block and turn left down the long dark alley. The first time I went there I thought I was gonna end up on a Chinese chopping board but there is a light at the end of the tunnel and some very pleasant surroundings too.
The porch has a bicycle installation cleverly fitted into the doorway design. Inside, a loving paint job has created a casbah-esque atmosphere so look closely at the small details. On the wall is a montage of photographs that seemingly has every other bloody foreigner to have passed through the door and their dog on it, but there's plenty of scope to make your own stories round here.
Beyond, don't expect too much from the rooms although there is a rising scale - the rooms are basic and I suppose it's more hostel than hotel but I never spend much time in the room when I am away so I don't mind that.
Upstairs and through the corridors there are a series of pleasant shots of Beijing's Hutongs and interesting facts on some of the more educational and hard to reach points of interest.
This is a good base from which to explore Beijing's cultural past. It is also close to much of the nightlife, some live music and beer bars, Western food and plenty of places to pick up last minute souvenirs.
Simple rooms with kettle, tv, bathroom, air conditioner and wireless internet connection.
Hot water sometimes runs irregularly so plan your showers if you want hot water. There is a quota on in the morning if I remember rightly. Also, the bathroom floor can flood with water that can make hopping from the sink to the bed, down a step, rather too dangerous for a quiet night in so be careful and utilise flip flops if you're more organised than me. Actually that;s a good point - Hutong Inns is probably the only hotel I've stayed at in China where slippers are not supplied for you. As the Chinese regard house slippers as fairly important I did find this quite odd.
Finally, the staff's level of English is passable but they'll be no quoting Shakespeare. On the pls side, I've managed to print out flight tickets in the office and make phone calls from the front desk before. They'll charge a small amount but obligingly help where possible.
I recommend it.
Unique Quality: Unique decor, backpacker vibe but privacy available, rooftop bar & a complimentary free drink with a thought-provoking view over the huntongs and towards newer parts of Beijing, snacks and beer/coffee available too (but you've got to pull the employee away from QQ).
The rooms are imaginatively decorated and fit in well to the colour scheme based around Beijing life but particularly focused upon characters from Peking Opera.
A travel guide and tour service is available in the downstairs lobby offering hikes along the great wall, kung fu shows, etc. and trips to places wider than China although I haven't tried this out. (see details below)
A free pick up and drop off service to/from the Andingmen metro (Line 2) is available if you're in the position to call up and request it depending on your arrival. You've got to ask for it! But I always find arriving/departing a bit of a nightmare however did manage it once with suitcases, although if you are baggage free and more relaxed it is easy to make it up to the station and back. This February I had a very novel ride in a rickshaw through the hutongs in the snow with a driver who was more than willing to help as soon as he'd buttoned up to face the extremities of Beijing in winter.
Tour information/trips from the Hutong Inn, Beijing is as follows:
1. Badaling Great Wall & Ming Tombs
2. Mutianyu Great Wall
3. Jinshanling - Simatair Great Wall (10k hiking)
4. Chinese KungFu Show / Acrobatics Show / Beijing Opera
5. Beijing Hutong Tour
6. Beijing Night Tour
7. Beijing City Tour (Forbidden City / Summer Palace / Temple of Heaven)
8. Yangtze river ship trip
9. Permission & trip to Lhasa, Tibet
10. Trip to Ulaan Baatar, Mongolia / Hanoi, Vietnam
11. Hostels / Hotels reservation
12. Air / Train tickets reservation
*with enough research, most of these things can be obtained independently and at less cost
(I've seen a lot of people ripped off in China, but it all adds to the mix that makes this place slightly unique and convenient)