If you're looking for a great location near Tienanmen square and the Forbidden city with friendly and helpful staff, and don't mind a pretty dirty place, this hotel could be for you.Keep in mind though, that the great location is close to key Beijing sites, but is not close to good bars / restaurants or other tourist infrastructure.
It's really more of a cheap guesthouse than a hostel, so if you're looking for a hostel vibe - go elsewhere. The WI-FI doesn't reach very well to the rooms. The bathroom kind of smelled, and the walls were paper thin. That said, it was cheap and well located near some great sites which was what we wanted.
Overall, this place is decent, but you can probably do better. The Beijing Metro is so easy to get around and so cheap, that I don't really think it's necessary to sacrifice for location, especially when there are better nightlight type areas near the Hutongs.