Inside a restored, century-old townhouse down a quiet lane, U-en has seven upstairs rooms with a variety of bedding – futons and tatami mats in private rooms and bunks or capsules (with curtains, lockers and shelves) in dorms. It's beautifully done, though pretty touches like shōji (sliding rice-paper doors) mean that sound does travel. Staff speak English; bicycle rental available (¥500 per day).
All of this sits atop an attractive cafe, where you can get coffee (from ¥400) and croissants in the morning (or beer in the evening).