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There are many with bad reputation in that area. I know of 2 myself. 1 is on this site, called Villa Alpen, friendly guy who owns it and speaks English. It is in Sun Valley part. Here is link

 

http://www.snowjapan.com/e/hotel/viewhotel.php?hotid=3

 

The other one I know a little is Riverside Hotel, which is more expensive and up near Kumanoyu area.

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Had a good time at Villa Alpen last year; as IceEiji mentioned, the owner is extremely friendly and helpful. The rooms are a bit spartan, but comfortable enough. There's a nice lounge area on the first floor with a fireplace and (more importantly) a bar.

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