Value for money is not great (like its not with any hotel in Taiwan) but its clean, nice people running it and decent breakfast with great views. We like to go watching stars up in Hehuanshan and use this hotel for a “base”.
I would also recommend Top Cloud 雲頂. It is a beautiful location. Don’t be discouraged by the tin shacks and grim parking lot when turning off 14甲 to get there. In fact, the food stalls are quite good even if they don’t take advantage of the location. There isn’t much hiking right around the hotel but, as mentioned, it is close to Hehuanshan and other hiking opportunities. Note: Even though I booked the reservation with a credit card, they required cash payment when I got there. They said they couldn’t accept credit card payment on site. Not sure if the situation has changed since then.
Just a few other recommendations:
All have their pros and cons and unfortunately the larger places, even though the cabins are nice, can be quite crowded and noisy on the weekends and holidays (it is Taiwan after all) but they are in beautiful spots.
Xiaoliuchiu has become horrible over the last few years. I think too many people have invested in B&B’s there and it has become too commercialized. Plus this weekend every hotel, homestay, B&B there is fully booked. That is gonna be a nightmare weekend there.