I'm traveling from Datong to Xi'an by Train. Didn't booked any hostel yet when I arrived in Xi'an on the next day. Meet a girl at Datong Train station having the same journey towards Xi'an. It's happen to be this girl is Shuyuan Staff. She hooked me up a room and send me to Shuyuan before headed home. (that's how I found Shuyuan)
Shuyuan is a very cosy hostel with a great ambience. The surroundings are excel with chinese culture. The hostel is really clean and well manage. I've stayed in a double room with a vietnamese friend and stay in one of Shuyuan 4 bed dorm. Both are great and comfortable.
Location. It's beside the south gate of The Great Xi'an city wall. Within walking distance up north you'll find the bell and drum tower, muslim quarter and The Great Xi'an Mosque. The nearest bus stop with a right bus number, it will took you towards Terracota Warrior Site, Xi'an Musuem and Goose pagoda.
Most of all being inside of Xi'an City wall is awesome.
plus a friendly staff from Shuyuan.