I went to Karuizawa during winter for ski & stayed at Prince hotel for its convenient location. If u are going in Oct, u have a lot more choices staying at pensions. Don't know which one is particularly good. Karuizawa is quite small. I took a bus (very limited service) to see the waterfall, quite a scene. Suggest u to take a look if u have time. The trick art museum is so-so. The outlet is decent, u can spend a few good hours there esp. if u wanna tea or meal. Cycling? It's too cold during my visit. Couldn't share much on that. Have a great trip!