20mins walk to the karuizawa station, it only costs around 1000yen for a taxi ride. Dinner is a must try here, very delicious and decent traditional Japanese cuisine. Room size is okay, just the public bath is a bit too small.
Had an authentic Japanese ryokan experience. We opted for the Japanese style bedding with half board. So the complete tatami mats, sliding shoji doors and futton bedding. Dinner was Kaiseki, and fugu was on the menu, simply amazing! Staff is also very nice and polite. I definitely highly recommend Tsuyu Ryokan!