Kanako Urashima (浦島 可奈子, Urashima Kanako) is Keitaro's adopted younger sister. She travelled with her grandmother for some years, and returned to Japan (while Keitaro was away at the USA) to fulfill her promise to her brother, and to change the girls' dormitory back into an inn. She assumes control of the Hinata Inn and immediately changes it to her desire. The residents are given the option of leaving or staying and working for her.
Kanako never came to see Keitaro as a brother after her adoption; she has loved him since they were children. When they promised to run a hotel together when they grew up, she always assumed it would be as husband and wife. Unfortunately for her, Keitaro does not share these thoughts, preferring to maintain a brother/sister relationship with her; however, even with what she feels, she still calls him by onii-sama ("brother", referring to the older sibling in a very respectful way).
She soon recognizes that all of the girls in Hinata Inn have some sort of affection for her brother after she tests them in a variety of ways. She tries to drive them away by being as mean and cruel as she could to them, in much the same way that they themselves had once attempted to drive Keitaro away. At first it seemed to be working, as one by one everyone but Naru left the new Hinata Inn, but the others ultimately returned.
Kanako is a mistress of disguise and is able to impersonate anyone, which she uses to try to get control over the Hinata Inn. In order to ensure a perfect impersonation, she also uses a technique called "bone-fitting", in which she would adjust her articulations in order to look taller or shorter (to the appropriate and creepy sound of clicking bones). Keitaro is the only one who can see through her disguise at simple view.