I have stayed at this hotel for a total of just over 3 continuous months, while I lived in Guangzhou. I was living out of the hotel while I worked in Product Sourcing in the Guangzhou area. I can tell you this hotel is great value, because for the price ,which was as low as $18AUD a night fluxuating upto $25AUD a night, is super cheap by Australian standards, but its also clean and reasonably modern and well built.
I have stayed is alot of other cheap hotels, and usually they were falling apart had issues in the room. This hotel has a great balance of price and accommodation standards.
I would say however its not really very close to shops. Its tucked away from the main street of Liwan district (Zhongshan Ba Lu).
There are some little gems of places in the same street as the hotel, there is a decent Chinese restaurant about 500 meters along Huangsha Ave and there is an amazing Spa and Massage centre right beside the restaurant, but for general shopping and groceries, its a bit of a walk (2klms+) or a taxi ride 10RMB to the nearest Carefour or Wallmart.
Liwan Lake opposite the hotel is pleasant and enjoyable for a walk and if you walk around to the otherside, you can then take some backstreets in behind Zhongshan Ba Lu and explore a plethora of Chinese restaurants and little shops.
Ultimately Liwan is a fair way from the main CBD of Guangzhou and is not really a place for tourism or holiday stay. But if you want to find a cheap hotel that is a good balance and you are looking to explore the more local areas of Guangzhou, this hotel is the best. I would steer you away from other hotels in the main street if Liwan. I have tried several. they are rather dodgy.