The Narusawa Lodge can be a little hard to find on your own (in the dark anyway!) as it is across the river in a quiet residential area, about 15 minutes' walk from the station and 20 minutes' walk from the World Heritage area. However this means that it is quiet and reflected in a reasonable room rate, that includes internet access.
Rooms are reasonably spacious, with a futon bed on tatami matting, and a low round table with cushions. The pillow was traditional (and very hard, so I padded it out with some spare clothing). However they are aimed at Western tourists and - uniquely on my recent visit - don't provide a yukata (or toilet slippers). There is also only one shared bath tub on the ground floor, which sometimes means queuing... However any slight shortcomings in the Ryoken aspects are offset by a very friendly and helpful owner, Yugi, who speaks excellent English. Yugi also provides a daily lift & return service to the local onsen baths mid-evening.
There's a fridge, toaster and microwave (and hot water) on each floor, and Yugi can also recommend when and where to get bargain sushi (after 4pm in the unlikely named Lion d'Or supermarket!) Breakfast was offered at a bargain 100 yen - but was only a thick slice of white bread for toasting plus jam and butter. I guess it's the antidote to Japanese breakfasts, but sent me out to Sunkus after day 1!
Nikko is a busy place, and this is a very good budget place to stay, offering a Japan-light experience, that is better than most budget business hotels.
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