Hoshinoya Karuizawa is located in a valley that follows the Yukawa River. The Yukawa River, literally translated as "The river of springs" is believed to have garnered its name because of the numerous springs found along its length. Visitors traveling through the Kutsukake posting station along the Nakasendo Highway on their way to the Kusatsu Hot Springs would take advantage of the low alkaline properties of the Hoshino Hot Springs along Yukawa River on their way home to rejuvenate their skin. The springs have since garnered the reputation of "Water for Beautiful Skin".           Hoshino Hot Springs was founded by prominent silk merchant, Kasuke Hoshino the Second. In 1914, a shrine-like bath house was erected under the skilled craftsmanship of temple builders that also offered lodgings to its visitors. In search of a superior quality natural spring, Kasuke further channeled his energies into excavation work and was rewarded for his efforts as Hoshino Hot Springs was transformed into a rich and abundant spring.       The opening of Hoshino Hot Springs created a cultural epoch in the local area. A free-learning arts workshop staged in 1921 by prominent poets and novelists, Hakushu Kitahara and Toson Shimazaki, led to a large number of cultural figures staying at the hotel and the creation of a number of famous works. Around 1970, Hoshino Hot Springs started "Hoshino Children's Group" that ran every summer for children staying in resort homes in the area. Participants in this groups included members of the Imperial Family such as Hironomiya, Ayanomiya and Norinomiya.   The natural flowing hot springs continue to flow unchanged from the ground. At the time of opening, this hot spring hotel was named "Myojokan" by the head priest of Enkaku-ji, a Buddhist temple situated in Kamakura, however later changed its name to the Hoshino Hot Springs Hotel, and has since carved out a history of close to 100 years. Hoshinoya Karuizawa, a luxurious resort village located in the valley of the Yukawa River, was later established in a fresh inspiration as a hot spring resort to showcase the culture of Japan and has taken another step forward in history.