This charming Qing Dynasty-style hotel offers an Old City location at an inexpensive rate. Yu Gardens are right next door and the rooftop bar offers elegant views of the flowers and trees below. The hotel serves mainly Chinese guests, and the rooms, though comfortable and well maintained, may take a little getting used to for Westerners new to China. The same goes for the Chinese breakfast—rice congee, steamed buns and dumplings—but, if you crave coffee, there's a Starbuck's right downstairs and McDonald's across the way is good for emergency infusions of Western fast food. Take some time to wander through Yu Gardens and the surrounding area in the evening. Exploring the back lanes is always is a highlight.
The hotel is more suited for leisure travelers (rather than business travelers) who are looking for something a little more cultural than a standard room at the Hilton. Business travelers might find the hustle and bustle around Yu Gardens a bit annoying. The hotel's famed Shanghainese restaurant, Lao Fandian, has been in business since 1875 and has served visiting luminaries from Bill Clinton to Boris Yeltsin. Be forewarned that the neighborhood gets noisy early, so a ground-floor room is not recommended.