Located on the outskirts of town 5km east of Sükhbaatar Sq is this attractive option with a choice of dorms and private rooms in an architecturally designed building, or gers in its large yard. There's a contemporary, brightly painted cafe that serves excellent Austrian meals and pastries (mains T8800 to T13,800).
Because it has secure parking, it’s popular among overlanders with their own motorbike or car. The main downside is the isolated location; it's in the Amgalan district, on the edge of a ger district and just off a busy boulevard. The nearest landmark is the large, round Catholic Church; the guesthouse is 300m past the church.