The Sovereign Hotel is known to be the best "3-star" hotel in Yangshuo, and for good reason. Rooms have free internet, include breakfast, and a one day bicycle rental for exploring this small town (at least at the time of my visit). The VIP rooms include a balcony with a river view, and is nothing short of comfortable by both Western and Chinese standards. Have stayed here in both 2010 and 2011 and never felt disappointed.
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