To be frank, we only chose this hotel due to our budget constraints (this hotel is often confused with its more expensive sibling, which also belongs to the Hoya Group - Hoya Resort Hotel Wuling) and we came away pleasantly surprised.
The facilities are nothing to shout about - this is not a 4 or 5 star hotel. In this regard, the name "village hotel" is indeed very apt. Do not expect anything other than a room, a simple reception area and a relatively small restaurant. That was not a problem for us as we spent most of our time in the day exploring the sights in Wuling and only returned to the hotel late at night. Location wise, Wuling Village Hotel is the furthest from the main gate leading to Wuling. It is right next to the trailhead leading to Taoshan Waterfall (which is a must-see if you visit Wuling). We drove there in a rented vehicle and there was ample parking space right next to the hotel.
The rooms were clean and functional. Beds were comfortable and the wireless internet was excellent. There were only two shortcomings with the room. First, the toilet was pretty run down as compared to the rest of the room. Nevertheless, it was clean. Second, the room was not equipped with a heater. We visited in May, which is considered one of the warmer months in Taiwan, and we were freezing at night. If you are visiting in December-February, you might want to pack warmer clothing (and maybe call the hotel to see if heaters are available). As we were only staying for a single night, we made do by warming ourselves with the hairdryer.
Service was excellent - the staff at the reception was very friendly and provided us with advice on the sights around Wuling.
All in all, it was a pleasant stay. If you are looking for a 4 or 5 star hotel with killer views from the room, this is not the hotel for you. On the other hand, if you are just looking for a clean and functional hotel to use a base to visit the other attractions in Wuling, this hotel will provide you with just what you need, at great value.