This is the best place I have been to in Japan. The welcome is very warm with a cup of green tea. Not all the staff speaks english, but they always get someone who can translate for you and they are very very nice. The place is a little bit outside the town, but they provide a shuttle service and on the other side it is close to the Hida folk village, one of the major sights around Takayama. If you don’t like public bathing, try to get a room with separate shower.
Stayed at Hida-Gassho-en, Gifu Prefecture.