One more - had to find the website. It's not in Zurich and as I'm new in town, not sure how far away it is but am told it's not too far - in Widen. It's a Japanese ryokan hotel - Japanese style tatami rooms are available - with open thermal water whirpool baths for some rooms; also a restaurant that serves a variety of Japanese food including a kaiseki menu.
Here's the website - unfortunately it's not in English - only German and Japanese but I hear it's good if someone wants to venture out of the city to discover a bit of Japan without getting on a plane. When I try it - I'll let everyone know what I think.
http://www.hotel-hasenberg.ch./html/de/frame/00.htm
PS (for Mark and non-smokers) - Okara is non-smoking.