This was the best place we stayed in during our month in China. The beds and bathroom were better than most hotels we've stayed at in China.
We ended up staying a few extra days in Xi'an just to stay at the hostel longer. They do a great tour to the Terracotta Army every day, and the atmosphere is a great mix of young backpackers and older budget travelers.
The coffee is overpriced, but that's the only issue I had. However, the food is good, and unlike the coffee, it is reasonably priced.