I paid for more for this hotel than it was worth. If you come to Hakone on a Saturday, except to be charged out the nose by everyone. When I checked in, I was supposed to have a lake view room, but they put me in a room that had a weird side view. I complained, and they moved me to a room directly facing the river.
The hotel itself is old, but basically clean. I wouldn't say anything was great, but it was in a decent location, and basically fit the bill. However, I paid double what I think the room was worth.
The onsen is very small, but nice. It has staggered hours for men and women.
Also, really only one person who spoke any real English, and when he's not around, expect not to be understood.
This is my 2nd time in the Lakeside Annex, first was during spring about 3 years ago, and then this year for the autumn season for the koyo (autumn leaves). Both trips, we did not have a car, but just used taxi and bus. Just the same it was great for weekend relaxation. If you're on a trip to Tokyo or Yokohama and got tired of the hustle bustle of the city, better swing by Hakone and stay in this hotel. It guarantees a really good night sleep (very quite area, facing Lake Ashi and near Mt. Komagatake).
A japanese tour company offers a one night stay in this hotel for just 10500 yen inclusive of the Shinkansen round trip tickets. The only down side of this hotel, is its quite far from the Central Hakone area. If you're going to Central Hakone area, just remember to ask for a taxi service number from the hotel staff just to be sure, in case the buses are no longer available.