The good -The onsen and sauna are great. Clean and excellent condition. The free coffee / espresso is quality. 2-3 short blocks to otaru station. The bed itself is reasonably comfortable. The large table in the common area of the lobby is appreciated.
The bad - this is a run down hostel - even the main building is hostel style. We kind of thought the annex was a hostel andain building more of a hotel. But if you are expecting a hotel, it's not. Rooms are tiny. Carpet and walls in hallway and elevator are dirty. Window frame in room is chipped / worn. Cabinet appears from '70s. Bathroom is a pod and is cruise ship tiny. It just does not feel comfortable here. Breakfast is in the annex building across the street. We checked it out but 1800 yen for runny eggs, ham, and white buns w 3-4 Asian options - we took a pass and found the quality and selection at 7-11 was quite a bit better.
All in all, the coffee and the onsen get 2 points each. And the bed gets a point. 5/10 feels too generous.
If you can kind of turn a blind eye to some of the negatives I mentioned above and focus on the positive, you will likely enjoy the onsen and the coffee.
If you are going to ski, you won't be able to beat the powder snow in Hokkaido.
