The hotel is situated atop Lion Hill in Lijiang Old Town, occupying a commanding vantage point overlooking the 800-year-old city and offering panoramic views of Lijiang Old Town and Jade Dragon Snow Mountain.

The location is historically significant—the hotel sits on the site of the former "Wenchang Palace," the academy of the Ming Dynasty's Mu family, and still retains remnants of the Qing Dynasty imperial examination hall and centuries-old trees.

Aman Dayan is designed based on traditional Ming Dynasty Naxi residences, blending elements of Central Plains architecture with a rustic courtyard layout and a low-key, understated style. It extensively uses local Yunnan materials: Yunnan pine, Naxi embroidery, and Dongba wood carvings, primarily using traditional wooden structures. The courtyard layout seamlessly integrates the interior and exterior. The buildings surround tranquil courtyards, offering both privacy and natural beauty.