We didn't stay overnight, but had a look inside the family-run guesthouse which is on the very bend of the river (in all the tourist promotion photos of the town) just 50m from the bridge. Rooms have balconies and there are restaurants down the street (60 seconds away for a whole variety).
Wonderful place for relaxing watching the world go by.
Fenghuang gets a lot of domestic tourists so there are bound to be a lot of good guesthouses up to (I would guess) at least one 3 star hotel.
There seem to be a lot of guesthouses in the oldest part of town which is on the south bank of the river across the covered bridge.
The photo has details of the gusethouse referred to above, including telephone number.
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