If this is your first time to Lijiang (Yunnan, China), you must be both excited and anxious right now! One of the main reasons may be choosing a suitable hotel, given that there are many different areas in Lijiang. Should you stay inside the UNESCO World Heritage Site of Lijiang Old Town? Would a hotel in the modern city be more convenient? Or is it better to escape the crowds and stay in nearby Shuhe or Baisha Old Towns instead? Where to stay in Lijiang is definitely an important question to consider.
After spending 4 days exploring Lijiang last April with my family (including my little 3.5-year-old daughter) ^^, I quickly realized that where you stay can have a huge impact on your experience. Some hotels in Lijiang offer beautiful views over the ancient rooftops, while others put you within walking distance of restaurants, transport and attractions. At the same time, certain areas can be noisy, crowded or surprisingly inconvenient if you don’t know what to expect.
Therefore, to help you select the best place to stay, in this post I’ll break down the main areas to stay in Lijiang, along with the pros and cons of each one. I’ll also share our experience staying in a local homestay and what we learned after navigating the maze-like streets of Lijiang Old Town with our luggage in tow.
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Where to stay in Lijiang – An Overview
Lijiang is a city in Yunnan Province, China, with a population of around 1.3 million people. Most travelers know it for Lijiang Old Town (or officially known as Dayan Old Town), a UNESCO World Heritage Site famous for its maze of cobblestone lanes, traditional Naxi architecture, picturesque canals and stunning mountain backdrop. For many visitors, staying in or near this Old Town is one of the highlights of a trip to Lijiang.
That said, choosing where to stay in Lijiang isn’t quite as straightforward as booking the first highly-rated hotel you find. The city offers several distinct areas, each with its own advantages and drawbacks.
Even within Lijiang Old Town itself, which covers more than 145 hectares, different neighborhoods offer very different experiences. Some areas are lively and convenient, while others are quieter, more scenic or better suited for travelers seeking a local atmosphere.
In the sections below, I’ll break down the main areas to stay in Lijiang and help you decide which one best matches your travel style.
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Inside Lijiang Old Town (aka Dayan Old Town)
For most first-time visitors, staying inside Lijiang Old Town is the best option. The Old Town is where you’ll find the iconic canals, stone bridges, traditional Naxi architecture and lively atmosphere that make Lijiang famous in the first place.
Most accommodations here are homestays rather than conventional hotels. Since the ancient houses have been preserved as part of the UNESCO World Heritage Site, many local homeowners have converted their properties into guesthouses or rented them out to homestay operators. Staying in one of these traditional houses is an experience in itself.
Personally, I loved staying in a homestay. Many properties are built around a central courtyard filled with flowers, plants and traditional decorations. For example, you can see a photo of the courtyard at our homestay in Lijiang below.
After a day of sightseeing, it was lovely to sit in the courtyard and enjoy the peaceful atmosphere. The hosts are often another highlight. Many are incredibly welcoming and happy to share local recommendations or stories about Naxi culture. During our family trip to Lijiang last April for instance, our host was exceptionally helpful and made our stay much more enjoyable. I’ll share a detailed review of that homestay later in this article.
That said, staying inside the Old Town does come with a few drawbacks. Because the buildings are protected, renovation options are limited. While many homestays have added modern comforts such as heating, air conditioning and smart-room features, some interiors can still feel a little dated. Sound insulation is another common issue. During our stay, I could occasionally hear sounds such as toilet flushing from neighboring rooms.
The good news is that not all parts of Lijiang Old Town are the same. So if you’re still wondering where to stay in Lijiang, have a closer look at the main areas to consider below.
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Around the Market Square / Sifang Street
The Market Square or Sifang Street is the busiest and most vibrant part of Lijiang Old Town. Every evening, large crowds gather here to watch traditional Naxi dance performances (7 PM daily), creating such a special festive atmosphere.
This area is also one of the most photogenic spots in town, with beautiful canals, stone bridges and traditional buildings that appear in many of Lijiang’s postcard-perfect photos.
PROS of staying around the Market Square / Sifang Street
- You’re right in the heart of the Old Town, with restaurants, shops and attractions just steps away.
- Perfect for travelers who enjoy nightlife and want to experience the Old Town after dark.
- Plenty of homestays are available in this area.
CONS of staying around the Market Square / Sifang Street
- Noise can be a serious issue. Besides the tourist crowds, many nearby bars and pubs play loud music and perform sexy dances (not kid-friendly) until around midnight. If you’re a light sleeper, I’d strongly recommend staying elsewhere.
- Since the Main Square is located deep inside the pedestrian-only Old Town, you’ll need to walk some distance to reach a taxi or Didi pickup point.
- Before booking, check whether your accommodation offers luggage transfer from the nearest entrance gate. Most homestays do, and it can save you a lot of trouble navigating the cobblestone streets with a suitcase.
Best for: Nightlife lovers and travelers who want to stay in the center of the action.
Here are some homestays near Sifang Street / Market Square with good reviews on Trip.com that you can consider when wondering where to stay in Lijiang.
Dishui Danping Ancient City Panoramic Homestay
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Near the Big Water Wheel
The Big Water Wheel is one of Lijiang’s most famous landmarks and sits near the North Gate of the Old Town, next to Yuhe Square. This area is a popular meeting point for tour groups and one of the main entrances to the Old Town. While it’s still lively, it generally feels less chaotic than the Market Square at night.
PROS of staying near the Big Water Wheel
- Extremely convenient for arriving and departing. Since you’re close to the North Gate, reaching a taxi or Didi only takes a few minutes.
- You won’t need to drag your luggage very far over the cobblestone streets.
- You’re within a 10–15 minute walk of Black Dragon Pool, one of the most beautiful parks in Lijiang. If the Old Town starts feeling crowded, a stroll through the park’s peaceful paths and temples is a refreshing change of pace.
- Plenty of restaurants and shops are nearby, but the atmosphere is generally less intense than around the Main Square.
CONS of staying near the Big Water Wheel
- The area can still be busy during the day because of tour groups and visitors arriving through the North Gate.
- You won’t get the same quiet atmosphere or elevated views that some other parts of the Old Town offer.
Best for: First-time visitors who ask where to stay in Lijiang for the most convenience, easy transportation access.
Some hotels in Lijiang near the Big Waterwheel that you can consider when wondering where to stay in Lijiang:
Leye Mountain-view Luxury Terrace Hotel
Banshan Yicheng Designer Hotel
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On Lion Rock
This is where we stayed during our trip, and overall I think it’s one of the most underrated areas in Lijiang Old Town.
Lion Rock is a hill located near the center of the Old Town. Many homestays are built along its slopes, accessible through a network of stone pathways and staircases. While reaching your accommodation can require a bit more effort, the rewards are worth it.
PROS of staying on the Lion Rock
- Where to stay in Lijiang for the best view? Here! Due to the higher location, many homestays here enjoy beautiful panoramic views over the ancient rooftops of Lijiang Old Town.
- The atmosphere is noticeably quieter than around the Market Square.
- There are fewer bars and pubs in this area. During our stay, I went to bed around 11 PM every night and never noticed any nightlife noise.
- Despite being elevated, you’re still within walking distance of the Old Town’s main attractions such as Mu Mansion and Wenchang Palace
CONS of staying on the Lion Rock
- Finding your accommodation can be confusing when you first arrive.
- Some homestays require climbing a number of steps, which can be difficult if you’re carrying heavy luggage.
- Transportation logistics require a little more planning than in other parts of the Old Town.
One thing I didn’t know before arriving is that there’s a vehicle-accessible drop-off point which is much closer to Lion Rock than the main Old Town entrances.
Because we booked railway pickup through our homestay, the driver was able to take us to a drop-off point on the hill. From there, it was only about a 400-meter walk to our accommodation. When we arrived, our homestay host met us there and helped carry our luggage, making the arrival process surprisingly easy. Later, when using Didi, we simply asked the host for the drop-off point’s name in Chinese to use in the app.
If you’re considering staying on Lion Rock, I highly recommend contacting your host beforehand to ask about the best drop-off location and whether luggage assistance is available.
Best for: Travelers seeking great views, a quieter atmosphere and a more scenic stay.
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Near the South Gate
The South Gate area sits close to Zhongyi Market, one of the most popular local markets in Lijiang. Compared to the more touristy sections of the Old Town, this area offers a glimpse into everyday local life.
PROS of staying near the South Gate
- Great access to Zhongyi Market, where you can sample local breakfasts and experience a more authentic side of Lijiang.
- Less touristy than the Market Square area.
- On clear days, some homestays offer beautiful views towards Jade Dragon Snow Mountain.
- Convenient access to taxis and Didi compared to accommodations located deeper inside the Old Town.
CONS of staying near the South Gate
- You’ll need to walk a little further to reach some of the most famous attractions and photo spots inside Lijiang Old Town.
- Depending on the exact location, views and overall ambience can vary significantly between properties.
Best for: Travelers who want easier transportation access and a more local atmosphere.
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In Lijiang City
While most tourists choose to stay inside Lijiang Old Town, staying in the modern city can also be a good option depending on your travel style. If you prefer modern hotels, reliable facilities and easy transportation, you may find the city center more comfortable than the traditional homestays in the Old Town.
Many hotels are located just outside the Old Town, putting you within a 15–20 minute walk or a short 10–15 minute Didi ride from the main attractions.
Another area worth considering is around Lijiang Railway Station, which is about a 20-minute drive from the Old Town. This can be especially convenient if you have an early morning train to catch and don’t want to worry about arranging transportation that early on the day.
PROS of staying in Lijiang City
- A wider selection of modern hotels, including international chains and larger properties such as InternContinental Lijiang Resort and Wyndham Lijiang Yulong Hotel.
- Better sound insulation and more consistent hotel facilities.
- Full-service reception desks and professional hotel services.
- Easier access to taxis and Didi compared to accommodations inside the pedestrian-only Old Town.
- Convenient for travelers arriving late at night or departing early in the morning.
CONS of staying in Lijiang City
- You won’t get the same historic atmosphere as staying inside a traditional Naxi courtyard house.
- Less opportunity to experience local life and interact with homestay hosts.
- You’ll need to walk or take a taxi/Didi to reach the Old Town each day.
- Returning to your hotel after an evening stroll through the Old Town is less convenient than simply walking back to a nearby homestay.
Overall, I’d recommend staying in Lijiang City if comfort and convenience are your priorities. However, if it’s your first time visiting Lijiang and you want the full experience of waking up inside the ancient town, I’d still choose a homestay within the Old Town.
Best for: Travelers who prioritize comfort, modern facilities and easy transportation.
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In Shuhe and Baisha Ancient Towns
When people wonder where to stay in Lijiang Old Town, they are usually referring to Dayan Ancient Town, the UNESCO-listed historic center that most visitors explore. However, there are actually 3 ancient towns in the Lijiang area. Besides Dayan, there are also Shuhe Ancient Town and Baisha Ancient Town, both located around 15–20 minutes by car from the main Lijiang Old Town.
Compared to Dayan, Shuhe and Baisha are smaller, quieter and far less crowded. While they have become increasingly popular in recent years, they still retain a more relaxed atmosphere and offer a different side of Lijiang. If the busy streets of Dayan feel overwhelming, these two ancient towns may be exactly what you’re looking for.
PROS of staying in Shuhe Ancient Town / Baisha Ancient Town
- A much more peaceful atmosphere compared to Dayan Ancient Town.
- Fewer tour groups and less nightlife noise.
- A slower pace of life that allows you to enjoy the traditional architecture and local culture without the crowds.
- Often slightly more affordable than accommodations in the heart of Dayan with the same standards. Some notable hotels in these areas include Pullman Lijiang Resort and Trustay Resort
Baisha is my personal favorite of the two. As the oldest of the 3 ancient towns, it was once the political and cultural center of the Naxi people. Today, it feels more authentic and less commercialized than Dayan.
If you decide to stay in Baisha Ancient Town, make sure to visit one of the local Naxi embroidery workshops. Watching the artisans create intricate embroidery by hand was one of the most memorable cultural experiences of our trip.
CONS of staying in Shuhe Ancient Town / Baisha Ancient Town
- You’ll need to take a taxi or Didi whenever you want to visit Dayan Ancient Town, where many of Lijiang’s most famous attractions, restaurants and nightlife spots are located.
Overall, I’d recommend Shuhe or Baisha for travelers who have already visited Lijiang before, are staying for several days, or simply prefer a slower and more authentic experience. If it’s your first time in Lijiang and you want to be close to the main sights, Dayan Ancient Town is usually the more convenient choice.
Best for: Travelers seeking a quieter, more authentic and culturally immersive stay.
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Review of Our Homestay – Where to stay in Lijiang
As mentioned earlier, during our four-day stay in Lijiang, my family and I stayed at the Yueshang Mountain Viewing Courtyard homestay, located on Lion Rock inside Lijiang Old Town. After comparing dozens of properties before our trip, we ultimately chose this homestay because of its location, traditional design and panoramic views over the ancient town. The price we paid was around US$90 for 3 nights, including breakfast, which was very reasonable.
Looking back, I think it was one of the best decisions we made during our trip after wondering for weeks where to stay in Lijiang. The homestay offered the traditional atmosphere we were hoping for while still providing modern comforts and convenient access to the main attractions of Lijiang Old Town. Most importantly, the host was incredibly helpful and made navigating the Old Town much easier than we expected.
Of course, no accommodation is perfect, and there are a few things you should know before booking. In the sections below, I’ll share my honest review of the property, along with practical tips that will help you avoid some common mistakes and make your stay more enjoyable.
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How to Book Yueshang Mountain Viewing Courtyard Homestay | Where to stay in Lijiang
I booked our stay through Trip.com, and if you’re planning a trip to China, I highly recommend using it for hotels, flights and train tickets.
If you’re heading to Yunnan in China for example, there’s no need to wonder where to stay in Lijiang because you can just browse through plenty of options on Trip.com.
In my experience, Trip.com offers far more accommodation options in China than Agoda or Booking.com, especially when it comes to local guesthouses and homestays. Many smaller properties simply aren’t listed on Western booking platforms, while Trip.com often provides more detailed information, guest reviews and easier communication with accommodation providers.
For our Lijiang trip, I booked all of our hotels, train tickets and domestic flights through Trip.com and found the process smooth and reliable from start to finish.
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Getting to the Yueshang Mountain Viewing Courtyard Homestay | Where to stay in Lijiang
One thing you should know before booking this homestay is that taxis cannot reach the front entrance. Like many accommodations inside Lijiang Old Town, the property is located within the pedestrian-only area, so you’ll need to walk the final stretch. Because of this, I highly recommend contacting the homestay via WeChat before your arrival. Ask them for the exact drop-off point that taxis or Didi drivers should use.
Better yet, consider booking their pickup service like us. In particular, we paid 40 CNY for a pickup from Lijiang Railway Station, and it was money well spent. While we were still on the train, I communicated with the driver through WeChat using a translation app. He met us directly outside the station, saving us the hassle of finding a taxi ourselves.
Since the homestay knew our arrival time, a staff member was already waiting at the drop-off point to help carry our luggage (phew!). From there, it was only about a 400-meter walk to the property. The entrance itself is somewhat hidden and easy to miss. The gate is labeled “Reading is Boutique” (see the photo above), and honestly, I would never have found it on my own if I hadn’t arranged the pickup service beforehand.
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Where to stay in Lijiang for a quieter and convenient location
The homestay is located on Lion Rock, around 400 meters from the Market Square and roughly 800 meters from the Big Water Wheel.
While this means you’ll need to walk slightly further than if you stayed in the center of the Old Town, I actually found the location to be one of the property’s biggest strengths.
The area is noticeably quieter than the Market Square, especially at night. During our stay, we could enjoy the atmosphere of the Old Town during the day and evening, then return to a peaceful room without the loud music from nearby bars and nightclubs. If you’re a light sleeper, I think this is a much better choice than staying right in the center of the action.
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Service: The Main Reason I Gave It 5/5
If I had to choose one reason why I rated this homestay 5 out of 5, it would be the service.
The owner (or perhaps a staff member as I’m not entirely sure of his role) was incredibly kind and helpful throughout our stay. He didn’t speak English, but that was never a problem. We communicated through WeChat using its built-in translation feature, and he always responded quickly whenever I had questions.
Whether it was arranging transportation, providing directions, or answering general questions about Lijiang, he was consistently patient and helpful. This level of service made a huge difference, especially since navigating Lijiang Old Town can be confusing for first-time visitors.
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Breakfast at Yueshang Mountain Viewing Courtyard
Breakfast was simple but surprisingly satisfying. Each morning, we were served a bowl of noodles along with two eggs per person. It wasn’t a buffet or anything fancy, but the food was freshly prepared and tasted great. In fact, I ate the same breakfast for 3 consecutive mornings and never got tired of it.
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Views and Common Areas
One of my favorite features of the homestay was its second-floor balcony. From here, you can enjoy beautiful views across the rooftops of Lijiang Old Town, especially in the early morning and around sunset. If you’re staying on Lion Rock, views like these are one of the biggest advantages compared to accommodations located on lower ground.
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The Room
We stayed in the Sunrise View Big Bed Room, located on the ground floor. To be completely honest, the room is starting to show its age. The furnishings felt somewhat dated, and the bed was firmer than what I personally prefer. Another thing to note is that there isn’t a solid door separating the bedroom and bathroom areas (only a curtain…).
That said, I thought the room offered reasonable value for the price we paid. It was comfortable enough, and the overall experience of staying in a traditional-style homestay outweighed these minor drawbacks.
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Housekeeping
The one area where I think the homestay could improve is housekeeping. It appeared that there was only one lady handling most of the cleaning, housekeeping and breakfast preparation. She worked hard and was always friendly, but during our stay we found a partially opened bag of food inside one of the bedside drawers, likely left behind by a previous guest. This wasn’t a major issue for us, but it suggests that room inspections and deep cleaning could be more thorough.
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Final Thoughts on Where to Stay in Lijiang
Alright, I hope this guide has helped you decide where to stay in Lijiang. For most first-time visitors, I recommend staying inside Lijiang Old Town to fully experience its historic atmosphere, traditional architecture and lively streets. However, the best area ultimately depends on your travel style, specifically whether you prioritize convenience, nightlife, peaceful surroundings or local culture.
My final tip is to pay close attention to a hotel’s exact location before booking. A few hundred meters can make a big difference when it comes to noise levels, views and how easily you can access taxis and Didi.
Have you visited Lijiang before, or are you planning a trip soon? If you have any questions or additional tips about where to stay in Lijiang, feel free to leave a comment below. I’d love to hear from you!
If you are in the early stage of planning your China trip, check out my post on 14+ Essential Tips for Visiting China in 2026.
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