This hotel is located in the mountains of the Taroko Gorge amid stunning scenery. It is off the beaten track, but if you book in advance, they will pick you up from the station in Hualien (about one hour away) and drop you there when you leave for TWD 800 total. The buildings are all wood, the cuisine is the mountain food of the local indigenous people, who give their name to the gorge. It's a good base for visiting the Gorge, all temples and mountains.
The area is popular with Taiwanese and Chinese visitors too, and can get pretty crowded at times. You have to wear a hard hat (which you rent at various locations in the area) because of rockfalls, and there are frequent signs with dire warnings about venomous snakes, giant hornets and wild cattle, all allegedly very dangerous. I did a fair bit of walking in the area (especially the delightful Liu Shui trail) without seeing any of these beasts, so the dangers may be exaggerated.
The evening show put on by the indigenous youngsters who work in the hotel is equally delightful, with a little audience participation, although if you don't speak Chinese few concessions are made on evenings when there are no other non-Asian visitors.
Accommodation is well appointed and comfortable rather than luxurious. A problem with my reservation, made by phone from the tourist office in the station in Taipei, which the hotel was reluctant to honour for the agreed two nights, was fairly quickly resolved in my favour after arrival.