This beautifully renovated guesthouse, with exposed beams and traditional plaster walls, has two Japanese-style bedrooms and sleeps up to six; there's also a small kitchenette and washer and dryer. The downside: it's a bit far away, about a 15-minute walk or a five-minute taxi ride from Kii-Tanabe Station, and you must check in, at Kumano Travel, between 3pm and 5pm.
The price varies according to the number of guests.