The centrepiece of this impeccably designed hostel is the irori (sunken hearth) in the bar-lounge, around which communal feasts of grilled fish, rice and miso soup are shared between guests (¥1000). The 'deluxe dorm' is worth considering – private timber cabins/capsules furnished with double beds. There's a good selection of rooms for families, too, and kids of all ages are welcome.
Tenmaku is from the same (exceedingly talented) folks behind Hakone Tent. In an area low on nightlife, the bar here is a choice spot for a drink or three.