A ryokan (旅館) is a type of traditional Japanese inn that has existed since the eighth century A.D. during the Keiun period, in which the oldest hotel in the world, Nishiyama Onsen Keiunkan, was created in 705 A.D. Another old ryokan called Hōshi Ryokan was founded in 718 A.D and was also known as the world's second oldest hotel. Such inns also served travelers along Japan's highways. They typically feature tatami-matted rooms, communal baths, and other public areas where visitors may wear yukata and talk with the owner. Ryokan are difficult to find in Tokyo and other large cities because many are expensive compared to hotels, and Japanese people increasingly use hotels for urban tourism. Nonetheless, some major cities do have reasonably priced ryokan, with some costing as little as $40 a night. However, ryokan are more typically located in scenic areas, such as in the mountains or by the sea, and in recent years many ryokan have been redeveloped to their original style particularly by resort chain Hoshino Resorts, whose first ryokan opened in Karuizawa in 1914.
Minshuku (民宿) are a budget version of ryokan, roughly equivalent to a British boarding house or a bed and breakfast. The facilities are similar to a hotel or may simply consist of spare rooms in a family home. Minshuku often serve as the only type of accommodation in towns or villages too small to warrant a dedicated hotel or ryokan. The overall experience is much the same, but the food is simpler, dining may be optional and is often communal, rooms do not usually have a private toilet, and guests may have to lay out their own bedding.
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