My wife’s friend found this place and we just loved it.
It’s smack dab at the mouth of the gorge, on the north side just over the big red bridge (hence the name, which is alternatively “Over the Red Bridge” or “Over the Rainbow”.) It’s beautifully situated, stylishly decorated in an eco-friendly way, and very romantic. A huge and rather interesting choice of Western or Chinese breakfast is included in the price.
The only disadvantage I could see was its proximity to the Su-Hua Highway, which makes for a lot of traffic noise in the daytime. (If you like sleeping in, I recommend earplugs). Beyond that, far as I’m concerned it’s the perfect non-backpacker, non-luxury hotel base for seeing the gorge or the gorgeous coastal scenery north of there.