In many backpackers' opinions, this is one of the most popular hostels in Lijiang with a beautiful view, refined decoration as well as deep local characteristics. It once had the only watermill in town so that hikers could listen to the sweet and cheerful underwater sound while chatting. The two-double guest rooms are made of wood, featuring its delicate carvings, Dongba characters on the window paper and transparent ceiling. Another feature of this hostel is a big old phoenix tree. When the tree blossoms it is a beautiful sight. There is a pavilion in front of the gate where hikers can chat and exchange their travel experiences.