The owners here have transformed a dilapidated hutong pile into a stylish, light-filled hostel that blends boutique design with Chinese courtyard decor. The four- to six-person bunk-bed dorms are a better choice than the cramped 'tatami' rooms. Private rooms are on the small side, but clean and modern. The White Dagoba Temple is next door.
Pagoda Light is well furnished with relaxing public areas, including a downstairs library/lounge and the rooftop Lotus Cafe & Bar.