We stayed for 3 nights at Hotel Yuzawa during February (for skiing). It's a small hotel conveniently located to several ski resorts but not for dinning.The room we stayed in, does not have its own bathroom/toilet. The room was a traditional Japanese style room, sleeping on the floor with futons. Note, you'll have to make your own bed and pack it away in the morning. There are communal toilets on each floor, with the bathroom facilities located within the "Onsen" area. The room itself was clean and has a small heater to keep you warm.
As for dining, you'll have to arrange a free shuttle bus with the hotel to get into town, but make your own way back by taxi (cost 1400-1800 yen). There are no restaurants around the hotel, but there is a convenient store with limited stocks located 10 minutes walk from hotel.
As for skiing, you can hire ski/snowboards equipment, clothing and buy ski tickets from the hotel. The hotel will provide free shuttle bus to and from some ski resorts, which is rather convenient.