The hermit cottage is a natural structure that appears in the forest. Four coins in New Lands and some gems in Two Crowns may be paid to it to call out the hermit; and a further one coin can be paid to allow the hermit to mount the Monarch's mount.
If a hermit is not picked up, he will wander back to the town center on their own (in New Lands this may trigger a bug).
Kingdom: New Lands – Multiple hermit cottages may exist on the same island and they all look the same.
Kingdom Two Crowns – Each hermit lives on a different island and there are some visual clues around each cottage to guess which one lives in it.