I really liked this place!  First of all, it's located out in the countryside, near the Yulong River, so you can just wake up, quickly eat some breakfast, and head out for a hike or bike ride to explore the karst hills all around.  Second, it's built from renovated farmhouses so it's got a really nice rustic feel that reminded me a little of the traditional houses you'd find in the countryside of southern France.  Lastly, the food is really awesome here.  We ate delicious, healthy food prepared from locally farmed vegetables - the perfect way to refuel for another day of hiking.  The only downside is that their shower water isn't the warmest (not an issue during summertime, but we happened to be traveling in January).

The place is perfect if you're visiting Yangshuo in winter - if it's raining, just go up to their balcony and order some hot drinks and enjoy the view of the street below and surrounding hills while sheltered from the rain.  They make a great chocolate cake that they serve warm (really hit the spot).

The Bamboo House Hotel is hands down the best price-value place to stay in downtown Yangshuo.  First off, the beds are way more comfortable than the standard super-hard mattresses found throughout China.  There's boiling-hot water available 24/7 and heating/air-conditioning in every room.  And with it's location just off busy West Street, you're close to the action without any of the loud music making it's way up to your room.  Some rooms also have nice little balconies overlooking the small alleyway it is located on.  At 120 Yuan, this is a great deal (most other places are 170 or higher with rock-hard beds, really noise from night-clubs down below, and only slightly warm water for showering).