I love this hotel and try to stay there every time I go to Beijing. It is a traditional 300 year old courtyard style house, which is laid out beautifully. It has everything from the most affordable, modest rooms (which do not include a bathroom), to beautifully spacious rooms that do include a bathroom.
The location of the hotel is very convenient, especially if you plan to use the Metro while in Beijing. It is closest to the "Dengshikou" station (on line #5), and about a 7 minute walk from there. If you take the "C" exit, cross Dengsi South Street, until you reach "Xitangzi Hutong". Turn right down the hutong, and walk almost all the way to the end of the street. There you will see a traditional gate for a courtyard house marked "No. 35, Xitangzi Hutong". Walk through the gate to the first building and enter. This is the office and breakfast room.
Enjoy!