Right in front of Yubatake, with lots of rooms overlooking it directly. A well-worn ryokan - everything is old, shabby, simple, but clean and does its job. As expected for a centrally located hotel, the bath is mainly indoor, fed by the Yubatake source. There's a water wheel feature inside. Small rotenburo without views. Water 42 degrees. The hotel's main perk besides the Yubatake view is a pass to visit the "sister hotels" onsen: - Kusatsu Onsen Hotel Resort with a great rotenburo - Kamenoi Hotel Kusatsu Yubatake, where one ryokan has three sources at once: Bandaiko, Yubatake, and Sainokawara. Dinner kaiseki was excellent, lots of local Gunma food. The restaurant is also stylish and pleasant. By the way, all the staff I interacted with were Japanese.