I've stayed at both the Kusatsu Now Resort and the Naraya. The Kusatsu Now is a Western Style building and we stayed in a Japanese Western Combo Room with 2 single beds and a Japanese style area. The hot spring was OK and the meals were good. The Naraya is a different class as it is a traditional ryokan very close to Yubatake. Both the room and meals were fantastic and the private hot springs were great. We also got to stroll around the village center in our Yukata in the evening. My advice: If you can afford it, go for the Naraya.

Kevin
From New Zealand
Stayed at Naraya, Kusatsu Onsen, Gunma