I've stayed in the Lusongyuan twice, the first time in 2001 and more recently in 2005. The service is quite good. The location is excellent. There are a large number of excellent restaurants and several top tourist sites within walking distance of the hotel. Situated in a quiet hutong, the Lusongyuan offers guests an opportunity to see an authentic, closely knit Beijing neighborhood.
There is only one real drawback to the hotel. Due to its hutong location, taxi drivers don't always know how to find the hotel. If you speak Chinese, there shouldn't be a problem. If you do not, however, getting back to the hotel can present a challenge.
If you take full advantage of the knowledgable front desk, they will hook you up with excellent, well-priced taxi drivers to take you on excursions outside of Beijing. These trips are definitely preferable to joining a bus full of other tourists.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.