I got this recommendation from someone, and I am so glad I followed through. This is the best hostel in China! I booked a private room with private bath, and upon arrival, we were pleasantly surprised to find that we had our own balcony too! Everything was clean and the Tibetan style housing gave it a great flair. There were electric blankets to keep us warm. The hot water can take a while to come on, but now you know, turn it on and read for 3-4 minutes, and the shower will be piping hot!
Everyone was so nice and helpful - they gave us maps, walked us to the ATM, and booked tickets. When they booked the tickets, they also let us know how much of a surcharge they tacked on, and we really appreciate that kind of transparency. We rented bikes for only 10 yen each for the entire day (not the best quality, but they took us from point A to B).
My husband was craving some western-style food so we had breakfast there once and it was oh so yummy!
Of note: Do not pay ANYTHING at the gate closest to the hostel. The taxi driver tried to convince us that we needed to pay 50yen to enter, but I had read about this the night before and adamantly refused. We walked into Shuhe no problem.
Other than the above annoyance, I highly highly recommend this hostel.
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