For our 3 week trip to China and North Korea we picked this hotel out of Lonely Planet for our first couple of nights stay in Beijing and we fell absolutely in love with the little place. Sure it is not super cheap but worth every penny.
Location is great in the middle of busy hutong area with lots of shops, bars and restaurants just around the corner but still it is tucked away in pretty silent little back alley. Only small minus on location is that is quite far away from any Metro station. As it is a small boutiqe hotel it might not have all the amenities that you could get from a big hotel in same price class but on the other hand the nice girls who work there make up for any other little flaws.
We stayed there 3+2 nights as there was no question about going back to the same place when we got back to Beijing at the end of our trip. It actually has a bit of a hostel feeling, or even a bit like staying at someones home. On my birthday i was even served an extra bowl of noodles with my breakfast because according to Chinese tradition you should eat long noodles on your birthday for a long life. Need i say that neither i or my travel buddy had mentioned my birthday, they had simply picked that up from my passport and wished me a happy birthday. That and the welcome tea that they offer upon arrival is just small things that make you feel very welcome and at home.
Rooms were very neat and clean, and the hotel had a very new and fresh feeling to it. The under floor heating kept the room real warm even with sub zero temperatures outside and the beds were probably the best and definitely the softest we had slept in during our 3 week trip around China.
Not sure if this applies even during more busy season but for breakfast they would tend to our requests and even serve us the breakfast in the afternoon as we were quite jet lagged when first arriving.
Also make sure to check try their nice selection of teas which are also sold as souvenirs in their little tea shop. Good for gifts to bring back home.