Taiseikan

Hotel

We ended up staying here for 2 nights as a last minute change when we found out that our room at Hotel Micuras in Atami had no windows, or at least none that you could see through or open.
Ultimately we think that it was a fortunate incident as we really enjoyed it here.
What we liked:
Beautiful view over bay;
Large 2nd floor room — 10 atami mats plus seating area and balcony;
2 private Onsen with views over bay. More Onsen on ground floor, really well appointed with nice rotenburo;
Breakfast served in room (2500jpy each per day) is spectacular;
Good staff, not intrusive at all;
Very cheap, around 10000jpy each per day or less;
Short walk to station, with atami and Ito about 10 minutes away by train.
Not so much:
Very few food options within walking distance, better to catch train to Ito where there are plenty, or Atami;
Road out front of hotel is quite busy.
All told, really good. We didn't have dinner here but from the quality of the breakfast I'd expect it to be superb.

Lovely Japanese Hotel, excellent service, brilliant tradition food, dinner and lunch. Also bus to see fireworks. Onden was very good. Perfect for short weekend break!

The lobby is lovely. The staff friendly and courteous. The dinner included live abalone prepared by a chef right in the room. There are two private baths with views of the sea. However, there are no non-smoking rooms, so our room smelt like an ashtray. The staff apologised profusely and offered us some air freshener, but it didn't help. We had an ocean view room, so there was a busy road just outside our window. Very noisy. This room is normally priced at about ¥25, 000 per person. We only could stay here because we had Rakuten points. Glad we didn't pay the full cost.
Finally, this is not a good place for overseas guests to stay because the staff cannot speak English, and they are not too sophisticated. One lady praised my Japanese when all I said was "arigatou". On the other hand, huge staff didn't seem too nervous around me, I think overseas guests would be alright with a Japanese friend or someone fluent in Japanese accompanying them.