Matsuyama Guest House has to be some of the best bang for your buck in Japan. You get a 1LDK (1 bedroom + dining/lounge/kitchen apartment) for just 2,500 yen - that's around $AUD25. You'd be lucky to get a crappy dorm in a backpackers for that price.
Small dining area. See that tote bag? My sister got it for less than $10 at KL airport after the strap on her bag got a bit dodgy. She used it then I got it off her when she was leaving because she took my bag (major bag logistics going on so she could cart home all my Arashi merchandise!) and I lugged it all over Japan filled with all my crap. It was some high quality bag for the price!
The bed was a bit hard but nothing I couldn't deal with. Lots of storage space to put your luggage out of the way too.
Small, blurry but adequately equipped kitchen.
Balcony with washing machine. Note the view!
The guest house is volunteer-run so you don't have same kind of reception service you'd get in a hotel. There was no one in the office to check me in when I got there but, to be fair, she'd asked my expected arrival date and I hadn't known so I think she'd have made sure someone was there if I'd been more precise.
I waited a while, watching some young girls practice their matsuri moves, then headed off to karaoke instead and went back later.
Once I got checked in, I had my own door key to the apartment so didn't need to worry about their office hours. The apartment didn't have clean linen and she said she'd get me some. She went off and I thought she'd forgotten all about it but, when I got back that night, a bag of linen hung off my door handle (I'd bought a cheap towel just in case).
The guest house is opposite the entrance to the ropeway, close to Matsuyama castle and on a street lined with cute shops and cafes. It's very close to the tram that loops around the city and, on the other side of the tram stop, there's a undercover shopping area with a heap of karaoke places plus all the usual Doutours etc.
Extra bonus - the apartment had a pair of nail clippers. I'm not sure if they were provided or left behind by another traveller but I was as excited as hell because my toe nails had grown out of control but this stage.
I didn't do much sightseeing in Matsuyama because I needed a day off. I did get to meet the lovely Sarah and we went for a wander around the city though.
My secret, Croc-wearing shame at the karaoke. I had no choice in it, believe me.
I don't think they put this on for just anyone who visits Matsuyama, but you might get lucky.
So, I'd totally recommend Matsuyama guest house to anyone visiting Matsuyama. There's nothing I could really fault about the place if you are looking for a convenient, low cost place to stay.