The opening of the "Kanaya Hotel" was prefaced by a land owner letting a foreigner stay at their home in 1872, and marked the beginning of the hotel business in Japan. In 1927, the Tobu Railway from Asakusa to Nikko opened, accompanied by a huge hotel blending western and Japanese styles, which would become the model for modern Japanese-style hotels. The Kinugawa Onsen Hotel was renovated together with the Kanaya Hotel. The lobby, dining room and bathrooms were renewed, combining decorations evoking a nostalgic hot spring mood with a new relaxation-focused hotel style.