We recently stayed overnight at Tonosawa Ichinoyu Honkan and it was exactly what we were looking for. A beautiful rustic but historic ryokan with charming staff, a peaceful location by a river and away from the busy tourist hub but easy to get around and see the sights of the Hakone area. The included dinner and breakfast were very Japanese (a good thing for us but bear it in mind if you are not an adventurous eater) and included multiple dishes which we really enjoyed. Our Japanese style room was quirky but comfortable, well-equipped, warm and the private onsen was fabulous. We loved wearing our yukatas around the ryokan and the general vibe of the place. We booked the family onsen for the free half an hour that was included, also an enjoyable experience. The only downside was that we only stayed for one night.