It's well worth the three flights of stairs to discover central Yuli's best backpacker hideaway, with bright, well-spaced dorms, small lockers, a pleasant twin room and wide-ranging views from the open rooftop. There's a bicycle parking area too.
From Yuli train station, walk south down Datong Rd, which then curves east. Turn right on Chensi 5th St (beside 87 Datong Rd), then first right again and the hostel is in the tallest building in the short street ahead.