The Happy Dragon Hostel is a good Hostel with average prices compared to other hostels in Beijing. It's a short way (~5min) to the next subway station so you can get around in Beijing quite fast, even if the Happy dragon is not located right in the city centre. What makes it special is the awesome staff working there. They really do everything to make you feel comfortable and help ypu out in every concern. The only negative thing I can think of was, that my room had no windows.
This was probably one of the most amazing hostels I've stayed at so far! The staff is friendly, speaks excellent English and is really helpful wiwth whatever you ask them for (tickets, translations etc.). The rooms are also really clean and my single room was sgnificantly bigger than in any other hostel I've been to. (huge bed, little tea table, nicefurniture etc.) The offered tours and tickets are cheaper than at the ticket counters at the sightseeing points. I totally recommend this hostel!