As the name implies, this place was abandoned before being found by Goh. It's located in the outskirts of Utakata, deep in the forest, and from the context of some cutscenes it may be nearby Asuka Village and the Phantom Forest. Based on the picture of the whole map of Utakata, it appears as though it is located north-east of Sotai Tower and south-west of Rokudo Valley, possibly half way between them along the river, opposite the river ravine from Phantom Forest. After the events of Way of the Ninja, it's abandoned once again.
The hut plays a larger role in the base defense mini-game. See Construction Mode for details.