There is cheap hostels all over Yanghuo, a private room in a hostel costs 30 RMB with your own bathroom per night. I am sure some are cheaper if you are sharing rooms and bathrooms, walk down West Street or any of the little streets that go onto West St and you will find cheap hostels.
We did not stay on West Street but i heard it can be very annoying as the hostels are right above some of the bars.
West Street International Youth Hostel : Yangshou International Youth Hostel
Satisfaction:
By graeme83 on April 8, 2009
Ok place to stay. The reception area is basically a travel agent with adjacent restaurant (both of which were relatively expensive). The beds and showers were good, although the fact that it didn't have a pool table was a disappointment :(
I found this hostel almost in front of the bus station, crossing the street. They have clean and comfortable rooms with private bath. Staff is kind and helpful. Also they organise trips, specially to Li River, sell bus and train tickets, and rent bikes for 15 CNY. My sleeper bus ticket to Guanhzhou was bought here! Unfortunatelly I din't rent here a bike because I din't find a good mountain bike.
Most of the people travelling to Yangshuo prefer to stay in West Street [WS], but I prefered to stay a little away from a tourist street. Staying in this hostel you are also in a good place. If you like to eat with Chinese in their restaurants, you find some restaurants not crowded with tourists. The market, I like a lot markets, bakeries and supermarkets are only one foot from the hostel.