Great hostel in good location with helpful staff. They help organize local excursions to the step. Our room (4 bed private) had a refrigerator, patio, large balcony, modern shower and great comfortable sofas and a free breakfast included. It's quite in the night, clean, we haven't got any problems while staying apart from the fact that the wi-fi was hardly working at all. They said they were to have that fixed. Otherwise you might need to use the wi-fi on the train station. Apart from that it's highly recommended. In the neighborhood you few bars and most things are in the walking distance.

We had booked a private double room but ended up with two seperate beds (that were easy to push together). Room and private bathroom were spacious, large television and two sofa's, a fridge and hot water kettle were provided.
You are not allowed to wash your clothes in the sink or shower (there is a sign in your room) but we did it anyway.
There is free wifi but it did not work properly (later we were told internet access was down, but nobody attempted to fix this).

Breakfast was ok, bread, an egg, some butter, jelly and chocolate spread, tea or coffee.
We had dinner in the restaurant once, but it wasn't very tasty. We tried to order Mongolian dumplings (as we could see the lady in the kitchen making them) but we were told they didn't serve them.. which was strange!

After a shocking experience at Lion Hotel we checked our handbook (really vital for our trans-sib trip) and checked in at the LG for a double private room. Was close to the trainstation for our early departure.
Pro's = cheap, clean, hot water, beds comfortable.
Cons = area didn't feel too safe at night. Very odd characters after dark, long walk into centre of town but still walkable.
Stayed in the summer in Aug 13 and was very warm. So close to the station that we could hear train horns all night. Still, it's cheap and cheerful and close to the station should you need an overnight stay.