Dani P.
Yelp
This place was one of our top ryokans that we stayed in during our trip throughout Japan. From the ferry port, you'll walk right (if you were facing inland) towards Itsukushima, then make a left as though you were going to Omotesando Shopping Strip. Walk past a few blocks, and Guest House Kikugawa is across the street from a temple.
All of the employees working there are incredibly nice. One of the gentlemen seems to have a small grasp of English, which is helpful. The rooms are beautiful and clean. Our room had a private bathroom in Japanese style, meaning the bath was in a different room from the toilet and sink. Our room also had a TV, which was a plus though not necessarily a requisite.
My husband and I added breakfast and dinner to our stay, because I'd read that many businesses on the island close early, and I wanted to make sure we had food. I have a shellfish allergy, which I know is insane when visiting Japan, but they were terrifically accommodating, and offered delicious meals. Their meals combined traditional Japanese with a little bit of Western, with just the right mix of both. The price was more than reasonable for two nights with a private bathroom and two meals per day. If I ever visit Miyajima again, I'd stay there again.
FYI this might bother some people, but the temple across the street plays a song or alarm around 7am. I slept through it one morning, and woke up confused the next.