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I've lost count of how many times I've led groups through Xitang's narrow alleyways. Every trip, someone asks me: "Should I stay inside the ancient town or outside?" And honestly, there's no one-size-fits-all answer. But after testing 12 different accommodations myself, I can tell you exactly what works for your budget, your sleep needs, and your Instagram feed.
Let me save you the trouble I went through on my first visit — booking a room on the main street that turned into a noisy bar until 2am. Oh, and by the way, Google Maps is useless here. Use Apple Maps or Amap (search "Xitang Ancient Town" in Amap's English mode). And cash? Most places only take WeChat Pay or Alipay — get them set up before you arrive.
Inside vs Outside: Which Side Wins?
Here's the deal: Xitang's old town is packed with more than 300 guesthouses, but only about 60 are actually inside the scenic area (meaning you pay the entrance ticket). The rest are in the modern town surrounding it. I always tell my groups: decide based on your sleep tolerance and luggage weight.
Staying Inside Xitang
You're paying for the romance — cobblestone streets, canal views, lantern-lit nights. Most houses converted into guesthouses are historic buildings, so expect creaky wooden floors and thin walls. The biggest perk? You can wander the empty streets after 9pm when day-trippers leave. But the trade-off: lugging your suitcase over stone bridges (no elevators, period) and potential noise from bars until midnight. Prices range from 300–800 CNY per night, but during holidays they double.
Staying Outside (but still walking distance)
This is where you get modern amenities: reliable AC, soundproof windows, and elevators. Hotels along South Xinshe Road or near the West Gate are 5–15 minutes walk to the entrance. You trade the medieval charm for a good night's sleep. Prices are 200–500 CNY for a decent 3-star. Plus, you can use the hotel's laundry service — a lifesaver in humid weather.
Top 5 Hotels & Guesthouses I Recommend
I've personally stayed at or visited each of these places. Here's a quick comparison table, then my detailed notes.
| Hotel Name | Location | Price (CNY/night) | Best For | Key Feature |
|---|---|---|---|---|
| Xitang Holiday Hotel | Inside, near East Gate | 400–700 | Couples, atmosphere seekers | Private canal view balcony |
| Lantern Inn | Inside, central | 300–550 | Budget travelers, solo | Rooftop terrace with great view |
| Jinjiang Inn (Xitang West Gate) | Outside, 300m from West Gate | 200–350 | Families, light sleepers | Modern, quiet, elevator |
| Water Town Boutique Hotel | Inside, near Taoxi Bridge | 500–900 | Honeymoon, photographers | Traditional decor with modern bathroom |
| Home Inn (Xitang) | Outside, main road | 180–300 | Backpackers, practical | Clean, reliable chain hotel |
1. Xitang Holiday Hotel — Best for Romance
This was the first place I booked myself, and I keep coming back. Rooms facing the canal have a tiny balcony where you can sip tea and watch boats pass. The staff speaks basic English, and they'll help you buy tickets. Downside: a staircase only — no elevator. Pack light! The included breakfast is simple congee and baozi, but there's a nice cafe next door with decent coffee (rare in Xitang).
2. Lantern Inn — Best Budget Inside
Don't expect luxury, but the location is unbeatable. Right next to the famous "Rainbow Bridge" photo spot. The rooftop terrace is perfect for sunrise shots — I got my best Instagram photos there at 6am before the crowds. Rooms are small and walls are thin, so bring earplugs. They accept cash? Actually, no — only WeChat or Alipay. But they can call a taxi for you to the train station.
3. Jinjiang Inn (West Gate) — Best for Sleep Quality
This is my go-to recommendation for anyone who values a good night's rest. It's a 5-minute walk to the West Gate ticket entrance. The room is standard chain hotel — clean, soundproof windows, blackout curtains, and a proper shower with good water pressure. There's a 24-hour convenience store next door. The front desk can print your train tickets if needed. I send my clients here when they have early morning trains.
4. Water Town Boutique Hotel — Splurge Option
If it's a special occasion, this is the place. The rooms have traditional carved beds but with a modern bathroom (rain shower!). The owner is a local artist — the lobby is decorated with her paintings. Breakfast is served in a courtyard garden. But be warned: the location is deep inside, so you'll walk 10 minutes from the nearest entrance carrying your luggage. They offer a porter service for 50 CNY.
5. Home Inn (Xitang) — No-Fuss Budget
When I'm on a tight schedule, I stay here. It's right on the main road outside the south gate, so you can hop on a bus to Jiashan city easily. The room is basic but spotless. No English spoken, but the translation app works fine. They have a luggage storage service — useful if you arrive before check-in. WiFi is stable enough for video calls.
How to Book Without a Headache
Here's what I've learned from dozens of bookings: Most guesthouses inside Xitang don't appear on Booking.com or Agoda. You need to use Trip.com (Chinese version) or directly call. But for foreigners, Trip.com's English site works well — just search "Xitang" and filter by location. You'll need to enter your passport number for booking; that's normal. Always confirm check-in details: some guesthouses require you to enter the scenic area with them to avoid buying a ticket twice.
Payment is almost always via Alipay or WeChat Pay. I've only seen one guesthouse accept Visa — and that was a fluke. So load up your Alipay card beforehand. For cash, bring small bills (10s and 20s) because change is hard to get.
Pro Tips for First-Timers
Let me save you from the mistakes I made:
- Check the window. Many "canal view" rooms actually face a wall with a tiny slit. Ask for photos before booking.
- Bring earplugs and an eye mask. Inside guesthouses are illuminated by streetlights, and the bars play music until 11pm (even on weekdays).
- Don't trust the rating on Ctrip (Chinese site). Locals rate differently. Instead, look for recent reviews mentioning "clean" and "quiet."
- Book at least 3 days ahead for weekends. Xitang is a Shanghai weekend getaway — it gets packed Friday to Sunday.
- If you have mobility issues, stay outside. All inside hotels lack elevators, and the stone bridges are tricky with wheelchairs.

Frequently Asked Questions
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Fang Wang
For the budget traveler, the hostel inside the ancient town is a gem. Dorm beds were spotless, lockers were secure, and the common area had a nice vibe where I met other solo travelers. The location is right near the old bridges. Five stars for value and atmosphere!
Stayed at a quiet B&B just a 5-min walk from the south entrance. The hostess made us fresh green tea every morning and gave great tips for avoiding crowds. The courtyard garden was perfect for reading. I honestly can't recommend this place enough—felt like home away from home.
Absolutely loved our stay at the boutique hotel right on the water. Waking up to the sound of lapping waves and birds was magical. The staff went out of their way to help us book a boat tour, and the rooftop terrace at sunset is unbeatable. Already planning a return trip!
Chose a guesthouse inside the ancient town itself, and the location couldn't be more convenient—steps from the canal and night market. The room had that charming old wooden beam ceiling, though the bathroom felt a bit cramped. Breakfast was simple but tasty. A solid 4-star experience; just wish the wifi was faster.
We stayed at a hotel just outside the west gate, and honestly, it was a bit of a letdown. The room was clean but super small, and the noise from the street went on until midnight. For the price, I expected better soundproofing and maybe a nicer view. The staff was friendly enough, but I wouldn't rush back.