300 years ago, the ancestor of the owners of this ryokan, Omiya Sanjiro, saw a deer bathing in the mountains. Thinking it strange, he did some research with knowledgeable people in the local community, and found that there was a high-quality hot spring there.
Under protection of the feudal lord of the time, the onsen village was built, and people flocked there.
That was the beginning of this therapeutic hot spring. It became famous as a place of relaxation for commoners, but was also used by samurai within the domain as a place to heal from wounds received in battle and hunting.
After that, many pilgrims going to Kattamine-jinja Shrine began using the onsen. Because their umbrellas and straw raincoats made them look like "kappas" (mythical water-dwelling creatures), the rumor spread that the ryokan was "lodging where kappas appear."