When we stayed we found the room good and the staff very helpful. Cheaper rates can be had nearby especially if you're willing to go down in convenience but there are reasons why you don't want to do that. First, Sanlitun, the bar & restaurant mecca of Beijing is located within walking distance away. Second, the area around the hostel is actually not bad itself. localnoodles.com, a local foodie website did an article on how the area around the stadium (where the hostel is located) has grown into one of Beijing's entertainment areas. The article can be found at http://www.localnoodles.com/update/35/Beijing/Workers-Stadium-Gongti-New-Bar-street-Nighlife-Restaurants.html
At the north gate of the stadium there is also a fabulous clean and english speaking place to get a massage called "Bodhi".
Although this isn't the cheapest hostel in town, it definately has it's perks.