Stayed here for a conference in April 2008 and was very impressed. The grounds are well manicured, the staff helpful, and the rooms pleasantly comfortable and spacious (by China standards). The hotel is not in the downtown, rather it is on the west shore of West Lake. So yes, you'd probably want to take a taxi into the city for shopping or a dinner at somewhere other than the hotel, but you avoid the noise and unimpressive aspects of Hangzhou, while being just feet away from what makes Hangzhou special--beautiful West Lake. Also, about a 1/2-3/4 hour walk away from Lingyin Temple and Feilai Feng--highly recommended!
English is so-so, but the staff is helpful and friendly. Breakfast is decent, lunch and dinner not bad. Quiet and relaxing.
I wasn't responsible for the hotel bill (lucky me), so I can't say how affordable the place is.
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