The place was okay, but a bit rundown. We went as a family, and I would not recommend doing so as there is only one shared shower for the entire place, which makes the stay a bit inconvenient. We had two rooms -- one was renovated and looked okay, while the other was more rundown and not so nice. The toilets upstairs were also a bit old, but the one downstairs was renovated and much nicer. So it's a bit hit and miss. As this is bit rural, there are quite a bit of bugs around as well.
The area is not very convenient as you'd need to walk 15-20 minutes to the central area for any food or to see the local attractions. It is a short taxi ride of ¥730, which isn't too bad, however. But if you want convenience, I'd recommend a place close to the stations where all the restaurants, stores, and buses are.
If you stay here, I recommend to buy groceries for drinks and food as there are extremely limited options available at the lodge.
Yuji, the owner, was okay...not that friendly or talkative...always seemed a bit rushed as well. But never rude. Plus, he can speak good English, which makes it convenient.
All the people that stay there are foreigners, surprisingly with kids, so it's not a very communal or fun environment for adults. This was surprising as most people we saw visiting Nikko are Japanese, but I guess they are staying on hotels instead. You may want to follow their lead as they are likely using travel agents to find the best places.
WiFi was also not stable.