Really one of the best hostels I've stayed at in China ~ this is the real China where you'll find mostly local travelers, a kind and engaging management, and just a really good culture of hanging out and undertaking excursions and going for dinners with new friends. The guesthouse is situated very close to the bus station and nice restaurants, the building is really nice with a courtyard and coffee and cookies provided : ) Highly recommended, everyone should go to Tengchong anyway and staying here will make your trip better. I ended up extending my stay!
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