I booked this hotel based on the 3-star rating and seemingly good reviews. First, be warned that the Japanese style room does not have a private bath. Second, the room and hallways had a musty odor.
As for location, yes, it is very close to the world heritage site, as advertised, but there is little else in the area that was open as far as restaurants, etc. It's probably better to stay near the Nikko station and take the short bus ride to the shrines.
On the good side, the public bath (onsen) is well maintained, and the host/hostess were nice enough to accommodate our request for a vegetarian breakfast. But overall I can't recommend this hotel.