Unlike most other reviewers here, I found this hotel to be disappointing and poor value for money - and I have lived in, and travelled extensively across, Asia for six years.
The hotel seems to be trading off its image as a quaint, old-fashioned, Chinese style inn, and is charging foreign guests a premium price for what is, in fact, modest "bed-and-breakfast" service and facilities.
First, the cost. I stayed for two nights at CNY 880 a night, including service, for a so-called "deluxe" room. I had stayed the previous two nights in an Executive Floor room at the Holiday Inn Central Plaza, currently ranked 1st out of 1,083 hotels in Beijing on tripadvisor.com, for less than a quarter more (CNY 1,094 a night). The comparison could not have been more stark in terms of levels of customer service, facilities and food quality. Do not misunderstand me: I never expected full-service Holiday Inn style facilities at the Sihe, but I did expect service, quality and facilities, in some form, that would justify paying over 80% of the Holiday Inn rate.
I had a tiny room (815 I think) at the Sihe, albeit with a large double bed and clean sheets, but with not even enough room for two people to pass each other, and certainly no space for luggage to be properly stored and accessed - and there was absolutely nowhere else to rest a suitcase than on the floor.
The bathroom was a square about the width of two small shower cubicles, with stains on the floor from from leaking pipes, thin and fraying towels, and not even enough shelf space to unpack toiletries.
The televison was an old cathode ray tube model (flat-screen would have freed some precious shelf-space), with maybe 30 Chinese channels and just HBO and CCTV 9 in English: amazing, considering that it seems to be almost exclusively non-Chinese guests staying here. Free internet access is offered - this worked at first attempt and then was down (along with HBO!) on the second day.
Second, the ambience. The staff were never exactly unfriendly, but equally at no point was there even the slightest gesture of friendliness towards us. The "welcome" at reception was a simple: "Can I have your passport?". Even though my reservation clearly stated that two of us were staying, and two of us arrived together, the hotel assumed it was just me staying (and had gone so far as to remove a set of towels just in case I had dared to use them as well as my own!). When the two of us came back to the hotel later on, the staff must have realised that there were indeed two of us and came chasing after us to get a copy of the second passport (they later presented us with the towels that had been removed).
I have no idea if the staff are competent in English - they should be, if they are charging sky-high prices to international visitors - because there was never any conversation or greetings from them. There is also an atmosphere of "We know we have to have guests staying here, but we would rather you weren't here and we don't trust you anyway" about the place: for example, printed labels on the cheap-n-cheerful Lux shampoo bottle to remind us that it "is not a gift" (in other words, don't dare think that you can take it with you!); being followed out onto the street to ask us to check out at 10am even though we had just left our luggage at reception, deposited the key, and had said we were returning a couple of hours later; being asked to sign on arrival a pre-authorisation of 100% of the room charges on my Amex card (this has never happened to me in any hotel anywhere in the world, and certainly did not at the Holiday Inn two days earlier).
Third, the breakfast. This is included in the CNY 880 but is poor value - we tried it the first morning, went to McDonalds instead the second morning. Of course the buffet was smaller than at the Holiday Inn, but it was the quality of the food that was such a disappointment - stale bread and cake, oily omelette, packet juice - all very basic and cheap stuff. A timid waitress watched over us eating in the tiny breakfast room, on low stools, never greeted us in any way, and re-stocked items on the buffet only when it was clear there was almost nothing left to choose from. It reminded me of breakfast at some of the youth hostels that I've stayed in.
I repeat again that I did not expect five-star, international brand hotel standards, but I did very much expect value-for-money, and my stay was very poor value for money overall. My suggestion for first-time visitors to China, or Asia generally, who want to see and experience an authentic Chinese neighbourhood, is to spend their CNY 880 on a hotel that has facilities to match that price (such as the Holiday Inn) and simply pop across to the Sihe one day to take a few photos inside of the courtyard (which is actually not impressive in any way at all).
In fact, the most interesting part of the hotel is what is outside, not inside: watching the daily life of the people who live in the hutong (lane) where the hotel is situated. Bear in mind also the hotel is barely accessible by car - our taxi dropped us on the main road, and we wheeled our bags down the lane to the hotel (a 5-10 minute walk).
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.