Granted, the bed was rock hard, and you'd to wait a bit for hot water. It's a bit run down. But you'll end up feeling like doing the dishes after dinner (do yourself a favour: stay away from West Street in Yangsho, dine at the rooftop restaurant instead) just because that's what you do around family. And you will end up feeling like one.
You go here to rent a bike, go on the river, and plainly relax. This hotel will be the perfect choice. The service is so friendly and helpful, that you just look past the small flaws at the hotel. Ask the manager for the rice wine (it will be perfects as dessert wine!), and he'll give you the full story. Ask them for guidance to the region, and they'll help you, doing it in good English. The kid will charm you beyond words. (he might even beat you in rock/paper/scissors) All, with big smiles.
The taxi to Yangshou is 40 RMB, if you want to go. You'll go once, and that's it. Stay at the hotell, do the tours, the river, the caves and the hiking.