Re Gora Kadan, expensive accommodation in Japanese traditional hotels is often not luxurious in a conventional sense. It can be relaxing and enjoyable for those who like that type of experience. To my eyes that breakfast looks very good, and I know someone who was previously a chef at Gora Kadan.
The odour was probably caused sulphur or other minerals from the hot spring water.
The way to get flexible service in Japan is to stay at an hotel under foreign management, and to deal directly with management if necessary. The Hyatt in Gora has more or less flexible service, and very comfortable western style beds.