Sun Moon Lake was a stop in my month trip staying at hostels. There are no hostels in this area so this guesthouse was an obvious option. It is not waterfront but it is conveniently located just a few steps from the bus station (which would not matter if you are traveling by car).
It is a modest place, the staff lack friendliness but it is helpful. Free wifi, no breakfast (ok, they provide you with a voucher in a local snack restaurant with lame options, so consider it as no breakfast). I was hesitant about staying here, especially after having read some previous reviews about the mattresses on the floor, however I was pleasingly surprised with the room, clean, spacious, comfortable, safe and well mantained; toiletries and disposable slippers provided; hair drier, iron and kettle in the room (I don't know probably I was lucky, my room was actually nice) and for me this is what matters, so I was happy with my choice and had a good rest! I can totally recommend it if you stay in a room like mine ;)
... I would only get rid of the decor plush toys!More