This is one of the better, if not the best, guesthouse where I've stayed in China! Settled in an old-naxi house, all restored. The atmosphere is really warm and relaxed, and the people there are nice and helpful! The owner is a photographer that knows pretty well the area and the most beautiful spots. He's a really nice person. Do not miss the supper-buffet, the cooker is amazing! The place is really REALLY clean! They have 24h hot water. And it is very inexpensive!

If you want to stay in the Old Town this is, for sure, the best choice.

This is the best guesthouse in China with friendly helpful staff who provide advice on travel and treat you like family. As well as nice sunny courtyard out back they are one of the few places to include kitchen and laundry for guest use, plus the showers are always hot.
Lots of people now stay in the old town, and this is located opposite Raven and Hazels.
Highly recommended.