Budget
Charlie Johng's Dune Guesthouse
The whole place is a bit rundown except for the nice cottages, with dirty and smelly shared toilets. Toilet papewr baskets are not emptied until they are overflowing. Flies are prevalent not only in the bathrooms but in the courtyard as well. Showers usually lack hot water and do not drain properly one drain for 5 showers. The restaurant is okay but you are better of eating in town. WiFi avaliable. Staff speak only basic english but is helpful. laundry 10 yuan per load.
Charlie Johng's Hostel
According to Charlie at the Dune Guesthouse, this place is no longer under his ownership, so don't expect to be able to make a reservation through the email address for the cafe or Dune Guesthouse. The change of ownership may be a good thing, however, given the hygeine standards at the Dune Guesthouse.
Midrange
Silk Road Dunhuang Hotel
Nice and clean hotel. Chinese/western restaurant. Roof-top cafe with beautiful views on the dunes, breakfast served here too. English speaking staff. Baby cot available.