My wife and I LOVE this hotel. We checked three other hotels before deciding on Bao Ngoc. Our room was super spacious and very clean. The two beds were very soft and comfortable to sleep in. We could have slept in all day if we didn't want to explore Sapa. The bathroom was clean and modern. The staff was very nice. The hotel is a little distance away from the center but it's an easy walk to get to. We rented motorbikes, so we didn't have to walk after the first of three days. We recommend this hotel to all. :)
We stayed in this hotel for 6 nights, as I unfortunately got ill in Sapa and had to recover here. The hotel is great, new, and very clean, probably the cleanest I found in all my travelling in Southest Asia so far. It's definitely higher category that the cheap price I paid for staying there.
The hotel is a bit outside the touristic center, but it's just 5 minutes walking on the lake side, and I enjoyed that walking also.
The staff is VERY kind: after some days I was ill they offered me medicins (I didn't even ask!) for free, and they didn't want to get money for that. They also brought me to a local doctor they called, made the queue for me, and translated everything to the doctor that was not speaking English... everything free.
If you go there ask for a room on the street: you will have a big room with giant windows, but without noise coming from the street.
A wonderful place to stay in Sapa.