This hostel is a contradiction. First, the pros. The location is great- it's about 15 minute walk from Dengshikou station. In Beijing, once you get to a train station, you can go anywhere. It's also situated at a hutong area- that'll give you a lot of cultural experience. What I liked most was the staff- they spoke very good English (which is important in a country that doesn't speak much English), extremely helpful, fun, and friendly. In fact, the staff is the biggest plus point.

The cons. Someone needs to lecture the housekeepers. On the first day, there was hair all over the room and on the bed. There were also some stains on the bed sheet- I dread to think what they were. In fact, the sheets were not even changed, and it was just pulled over. I informed the housekeeper but was told that they only change the sheets once in three days. Three days later, they still have not changed it. In fact, the only housekeeping done was to replace the toilet rolls. The towels and the dustbins were left as they were for 5 days. The room was also dusty, and the toilet flooded. I urge the management to please train the housekeepers well. It's unfortunate that a great place like this is ruined by such simple but important matters.

There's not much to say - I only stayed there for two nights.
But rooms are clean, staff is very friendly and speak good English (and will book you tours and give you all the information you need) and considering the great and charming location the price is real cheap.

BEWARE!!!
We had booked a room at Saga by email and had received two confirmation emails from them. Yet, when we arrived there (after 14 hour in a plane) we were told that the room had been given away because we said we'd be there at 10 am and it was now 11 am. We had indeed said that, but the plane had been delayed. Please note this was 10 AM, in the morning!!

This place makes you feel like in Beijing!
Located in the historical area in Beijing. This hostel is better than the Western standard for hostels. It feels more like a 2-star hotel. You can rent bikes and cruise around the historical Hutong area. Tiananmen square is 15 minute walk away. You can go to the Great Wall with their orgaznied tours. But avoid Badaling Great Wall. There are always too many tourists. Go to Jinshanling Great Wall instead.