Hotel Indigo Diqing Moonlight City by IHG

We had a terrace overlooking the ancient town, and the views were stunning. The hotel sits on a hill above town, with well-equipped rooms that include floor heating, a humidifier, air purifier, and oxygen supply. Ours also had hot towel warmer cabinets and Dyson hairdryers. They brought complimentary snacks and desserts to the room at night. Breakfast had a great selection of Tibetan food, and the restaurant serves Chinese dishes as well as Chinese-style Italian food. The yak hotpot is worth trying. Incredible place.

The balconies had incredible views of the world's largest praying wheel. We stayed in two rooms, each with a different sized balcony, and both had a great view. The experience felt surreal. Our room was spotless and had oxygen pumped in, and both dinner and breakfast were excellent. At $300 a night, it isn't cheap by Chinese standards, but it was a superb stay. I took a photo of the porter, a Tibetan man who worked extremely hard and deserves recognition.

Great spot with a lovely view across the city. The staff were very helpful and accommodating.

I’d still highly recommend staying here for its position above the old town. It’s easy to walk down, but at 3,300 m the uphill return is tiring, so a taxi back is a good idea and costs about $2. Taxis can reach the hotel by a back road, avoiding the terrible traffic through the old town. Since it’s so popular with Chinese tourists, I’d avoid staying somewhere that leaves you stuck in that traffic. I also wouldn’t stay outside town, such as at Banyan Tree: a friend struggled to get a taxi pickup there, and getting to sights or food can cost a lot more. The lobby and restaurant are beautiful, though there’s very little else to do here: no gym, pool, spa, or other facilities, so it can get boring if you aren’t out touring. Rooms are on the small side, but the minibar is free and has non-alcoholic drinks only. Reserve the restaurant early, especially in high season or bad weather. Mine was full, and I was told to go down into town in the rain to eat. The menu is large, but they often don’t have about half the dishes you want to order.