On a normal day the price is okay, but during new years they almost double the prices, and this hostel is not worth that inflated price. The food isn't bad, it's just disappointing. You order some spaghetti and tuna, and that is what you get. Cooked spaghetti with some canned tuna on top, no sauces or anything. Just a tiny splash of ketchup on the side. For breakfast you get a hasbrown the size of a 1 RMB coin.
Rooms are nothing extraordinary, the double rooms are just two single beds pushed together. The area around the hostel doesn't have anything special either, except a roast duck place. The subway is pretty central, you can easily get anywhere from there.
So, on a normal day, go for it. It's relatively cheap and central. Just don't go after the prices are inflated.