This hotel was a surprise for us as we were unsure as what to expect. It is unassuming and very relaxed. The location is perfect and the room/amenities are beyond acceptable. Wifi is free and works brilliantly! A huge plus in our book. We must mention how wonderful the hotel restaurant is....we are not ones to eat at "hotel restaurants", but this one is top notch. Go there and see for yourself.
PS-Get the masala tea and momo.....soooooo wonderful!

After staying one night in a grubby hostel in Lhasa, my two sisters and I stumbled upon the House of Shambhala and decided to 'upgrade' to a hotel for the remainder of our stay. The rooms are gorgeous, traditionally Tibetan in style but with modern fixtures and fittings. After some of the places we had slept in on our travels we were really thrilled with our room. This is a small, Tibetan run hotel and I have to say the staff were just amazing - so warm and friendly and they went out of their way to make our stay welcome. I was sick for some of my stay and was checked on every couple of hours and brought flasks of tea - I can't imagine that happening in a Western hotel! I notice some comments mentioned that staff didn't have good English, that wasn't my experience, in fact some had excellent English.
I'd highly recommend a stay in this lovely spot in downtown Lhasa.

We visited the Red Capital properties in July and August of 2009. The staff at the Red Capital Club in Beijing, the House of Shambala in Lhasa, and the Red Capital Ranch near the Great Wall were exceptional. All properties are similar as far as rooms and restaurants go. We only had dinner at the Red Capital Club but we stayed at the other two properties.
Rola at the Club and the Ranch is an amazing person! She was great help to us with all of our reservations, which included lots of changes! She is very knowledgeable but above all, very friendly and always ready to help no matter what you need.
In Lhasa, Lobsang was the greatest! He worked with me to get a travel permit to Tibet and had the permit sent to my hotel in Beijing. His English skills are great both written and spoken and he knows what he's doing. Lobsang is also one of the nicest people I've ever met!
All in all, the Red Capital experience was GREAT! It's not the Ritz so if you're looking for the Ritz, book the Ritz. These properties are nice, clean, friendly, and a "cultural" experience. If you're looking for nice friendly people, small numbers of guests and local flavor these properties are for you!

As others have mentioned decor is cute. Room was good size (#201). Has in room internet. Would have loved better if had been quiter, remember this is an old house and rooms are not sound proof. Some of the quaint sounds where OK like dog barking in the distant- but when someone came in at 2:30am and had to ring bell and knock on door- whole hotel hears. Staff very helpful and friendly