The lobby is ageing, but the 53 well-maintained rooms (mostly Japanese style, with private facilities) are a great deal. The rotemburo (outdoor bath) is in an attractive garden, and the boat-shaped indoor bath is the largest in Unzen. Families will appreciate the baby seats for the bath. Day-use bathing (¥800/700 with/without towel) is also fine.
What makes a stay here special is the chance to experience the kind of 'classic' onsen-hotel experience at a fraction of the cost. The welcome tea service, the family-friendly atmosphere, and the friendly, courteous staff are all big pluses.