During our stay in the tsunami-devastated Miyagi prefecture, we stayed at the Hotel Kanyo for one night. The hotel is located just outside the tsunami hit area of Minamisanriku, but the hotel is intact and fully operational. We stayed as part of a business trip, for one night. The hotel itself was lovely, very clean and everything is shiny. The decor is a bit dated but the upkeep is phenomenal and the hotel looks like it was beamed straight out of 1988. Rooms were traditional Japanese style, sleeping on thin mattresses on the floor. If you're in Japan, you've got to try this at least once!
The hotel staff were fantastic and extremely friendly and gracious, despite the horrors that the region has been through. We felt good spending our money in this hotel as we could see the hotel supports the town. The onsen (hot baths) is apparently quite famous and is definitely worth a go - the outside one is a great experience. The traditional Japanese food we had was lovely - fresh and tasty. You could tell in it's heyday this hotel would have been the bees-knees - complete with swimming pool and views over the bay.
Overall, if you're in the area it's worth a stay here. Especially at the moment, the region could do with the boost.