The Taiwan Folk Arts Museum is located in a Japanese occupation era building formerly used as the upscale Koyama Hotel and hot spring. Designated as a Taipei historic site, the two-floor wooden structure covers an area of about 2,645 square meters. The Japanese-style courtyard is elegantly landscaped, with a small bridge, stream, artificial mountain and pine trees. The building is especially evident beautiful illuminated at night. During World War II, the building was used as a Japanese officers' club. After the war, it was used as an official guesthouse and later it was sold to a private buyer. The building also has been featured in many local movies. The museum exhibits include a permanent display on the history of the museum building as well as various theme exhibits. The displays provide a cultural complement to the seasonal natural beauty of the museum setting. On the second floor, visitors can also enjoy Japanese tea ceremony demonstrations and other artistic performances. The space can also be rented for dinner banquets.