I have travelled around North/Western China quite a lot and I have to say that the Silk Rd Hotel stands out considerably - for its comfort, location, and decent English speaking staff. It is by far the nicest hotel in town. Yes, there could be improvements - with their breakfast perhaps, but on balance its always a pleasure to go there (I've passed through Dunhuang a number of times and have stayed at the hotel 5 or 6 times).
NB - the charge for internet access in the rooms, but have free wifi in certain parts of the hotel.
Well worth it.
- Free Wifi