The location is close to the hakone yumoto station--only a twenty minute walk, but it is up a pretty steep road. It's doable, just plan accordingly. The baths are separated by gender, (which is common I think, unless you go to the kind of place where you reserve a time slot or have private baths).
The meals at this place were phenomenal. If you stay here, it's worth buying the half board option, as both dinner and breakfast were delicious, huge, Japanese feasts. The public bath was clean, and comfortable, as was our room. We only stayed one night, but were able to use the bath the next day (our check out day) after our hike, which was really nice.