We stayed in the area twice before but on both occasions in the next door hotel, the large Qing Jing Guest House, which is a little cheaper but we found our stay in this hotel nicer because it was a lot smaller and more personal. It is a "boutique hotel", the decoration when you enter is lovely, full of soft toys.The owner is very friendly and speaks good English. Misty Villa is situated on a hill, so it's pretty steep everywhere. For people who can't climb a lot of stairs, this is not the place to be. But then again, you are in the mountains, so a few stairs shouldn't actually be a problem. We booked breakfast and dinner, both were good, especially the dinner. For breakfast they have a buffet, for dinner it's a fixed menu, no choice but very tasty, The rooms are large and well decorated. More towards "basic" than "luxury" but all done very nicely. My in-laws stayed on the first floor, we were on the top (room 312), so we had to climb most.
When we go back for mountain hiking, Misty Villa will definitively be our first choice.