You couldn't hope for a bigger welcome or fresher seafood. Our room was large with a sea view, own bathroom and traditional layout. The meals were great - loved the oysters - and it seems as good a location as any on such a small island. Very friendly and memorable

My point is clear: please avoid this hotel (can you even call that a ryokan?).
There are many reasons such as tiny rooms, dirty bathrooms and no common bath (not to mention hot spring) to make up for it, the necessity to come back before 12 midnight, the lack of comfort, the position right next to the ferry arbor, the price, and so on...
But then again, it is Miyajima, so it will fatally cost you a bit to enjoy a good stay.
However, there is one reason above all others to avoid that place: they are ugly people.
I have been in Japan for a long time, so I have learnt to read deeper than the nice smiles and the very courteous dialogues. Most people are genuinely good-hearted, but they are not. I shall explain myself: When I arrived at Miyajima, I went to the ryokan I had reserved, a hotel called Momijiso. The place was very beautiful and the employees very welcoming. However, around 6pm, I got a phone call from Yamaichi, asking me when I would arrive... You can imagine my confusion. As I did not intend to spend the night at two hotels at the same time, and furthermore, I was already at the hotel I had wished for, I tried to somehow cancel it. They flatly refused, telling me that I had to pay 15000 yen per person anyway. I should mention that never before someone had been so rude to me in Japan, not to mention coming from an employee... (I was really shocked) On the other end, the tenant of the Momijiso was so kind as to let us cancel WITHOUT charges, and if that was not enough, made sure that a car would come fetch us. Once arrived at the crappy tourist trap called Yamaichi, we learnt that the agency that happens to manage the reservation for both hotels made a mistake and filed two reservations, one for Momijiso and one for Yamaichi. Despite the circumstances, they did not let us choose which hotel we wished for, and instead, made us pay FULL PRICE for a hotel we had been forcefully assigned to. Last but not least, they put us in the crappiest room they had.
I hope I was clear enough. There is a good moral for this story: One should never forget that he or she is a client, and the client in Japan is treated like a king. Employees being nice to you does not mean they are good intentioned, just that they mean serious business. However, while Momijiso just want you to have a nice time in Miyajima, Yamaichi doesn't even mean business, they just want your money.

This place was the highlight of our trip: we had a huge ryokan-style room, nice view, were served very nice food and the lady at the reception was so friendly!
I can understand that one can be misled by all these positive sounding reviews. We had not been influenced by it, just booked the room two hours in advance in a tourist information in Hiroshima. So we did not know what to expect and were so positively surprised.
Like someone mentioned: the place is not new at all and not perfect, but it's really run with love. You have fresh flowers in every corner and the people are sooo nice.
I think I have never slept as good as on these futon beds there!!

This is the best value for a Japanese style hotel on Miyajima. The lady at the reception desk was extremely nice and very helpful. Our room with bath was fine -- tiny bath, small to medium size room. It is an older place, that is showing a bit of wear, but it is more than adequately clean and comfortable. It is right accross from the ferry stop. Our room in the front had a very nice view. It is popular with the Japanese -- there was a big Japanese banquet being held on the second floor and several Japanese eating in their restaurant. We had an absolutely wonderful Japanese style dinner here and a delicious Western style breakfast. We have fond memories of this place.