This is a cosy place in Rausu Onsen, just a few kilometres inland on the road to Utoro. The Japanese-style rooms with private facilities are spacious, there's a large shared onsen bath with a rotemburo, and the friendly staff speak a little English.
It's best if you have your own wheels, though the Rausu–Utoro bus stops across the street, at Rausu Onsen.