We couldn't get a room in Nikko, so we ended up out in the boonies in Kinugawa Onsen. I would guess that 1/3 to 1/2 of the hotels are closed. Our hotel was nothing to brag about. We have learned that if you can't get a Non-Smoking room in a hotel, all rooms are smoking rooms. We were given a spray bottle of room freshener. Warning: there is little English spoken by the staff. The staff at the onsen didn't speak any English, which made it disconcerting when considering bathing at the onsen. It took over an hour from Nikko to Kinugawa Onsen station. There is a bus service from the station to the area hotels that costs 190 yen/person. Just give the driver the name of the hotel. There is a restaurant on site, but if you're not a member of a tour group it was our understanding that we couldn't eat there. (Note this was a big communication issue.) We left to try to find an open restaurant, but the town appears to be geared to summer tourism and we didn't find a restaurant nearby. We ended up walking back to nearby the train station. This is probably the worst hotel I've stayed at in a long while.