The story
From Japanese 旅館(りょかん) (ryokan), which is from Middle Chinese 旅館 (MC ljoX kwanH, “inn, traveller's lodge”). Compare modern Chinese 旅館／旅馆 (lǚguǎn, “hotel”), from 旅 (lǚ, “travel”) + 館／馆 (guǎn, “lodging-house”).
Etymology from Wiktionary, CC BY-SA 4.0.