Yet another long-time guesthouse driven out of the old town by rising rents, the new Mama Naxi is a rather swish place in a quiet residential compound close to the bus station. Dorms are spacious and the private rooms are comfortable, although it feels more like a hotel than a traditional guesthouse. It hosts daily communal dinners (¥25) and the staff remain friendly.
This is a good place to book tours to the surrounding area. Bike hire is ¥25 per day. It's difficult to find (no sign pointing the way), so call ahead and they will pick you up.