I've stayed at Jin Li Hotel a number of times over the years, and have always found it a very comfortable and convenient place to stay. It most definitely is not a hostel, but a hotel. I have stayed in rooms overlooking the courtyard, across the street from the reception, and found these to be of good quality, in a nice authentic style befitting of its location in the old style tourist street that is Jin Li. It can be noisy in the evenings due to the popularity of this area with tourists and locals for a night out, but equally so - is very convenient if you want to partake of the restaurants, bars and clubs on your doorstep here. Starbucks is very nearby, almost next door, which is very convenient for western style breakfast/coffee etc. Most recently my wife and I stayed for one night in April 2013, in one of the rooms on the reception side of the street, and still found it comfortable - though the room here was smaller than the others I have stayed in.
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