This Kyukamura is a Showa-era hotel, and, unfortunately, it still looks like it. The lobby is fairly modern, and the buffet is spacious and the food, at least the Japanese food, was quite plentiful and delicious. The Western food, especially desserts and breakfast, was very much a Showa era idea of what Western food is. Our room was spacious, and the beds and parts of the room showed remodeling, which was nice. The room has an old-style bath, and the hot water took a long time to come out. I tried one of the onsen baths. It was clean and maintined, but small (only 6 wash stations) and uninteresting (no view through the windows). The employees were unfailingly polite, friendly, and helpful.
However, the halls, balconies on the room, and many other areas showed cracked paint, bare, rusting metal, and marred wood doors. In addition, the price is very unreasonable, given the poor state of much of the hotel.
Of course, the island itself is great fun watching and feeding the rabbits, and learning about its poison gas factory history, so I would recommend you consider day-tripping as there are many ferries.