Peking Uni International Hostel 

Me and my friends spent three weeks here while studying Chinese and sight-seeing in August 2012. Locating the hostel was a bit tricky at first but eventually we found out that it's pretty well located as far as Wudaokou hostels go - on the main road, 5-7 minute walk from the subway station, and a 15 minute walk from our school. As for sight-seeing the location is not ideal because it's at least a couple of subway rides from most interesting locations, but that's Wudaokou for you... and the Summer Palace, Old Summer Palace and Olympic Park are quite close (not a walking distance though). We stayed at two 2-bed rooms which were quite ok (no window, towels not changed every day and sheets changed only once during our three-week stay). Hostel offers laundry for 18RMB/barrel which was really convenient (as we found out later on the trip). WiFi access is not ideal in the rooms but the lobby and lounge are good for that. Hostel has a roughly equal number of Chinese and foreigners (including people who have been living there for months and even years). Staff is quite helpful and some even have decent English for China. Overall - a decent option if you're studying somewhere in Wudaokou.