Once on the lower level head southwest and you will reach his bedroom.
Taren Omothan – The monk is the master trainer for the Hand-to-Hand skill, and he is found in the lower floors of the Holamayan monastery. Hand-to-Hand Combat Trainers in Morrowind
You may also find it is a good resting spot, since they have beds which are free to any visitor. The only building you will see is the monastery, you can’t really miss it. Head south of Sadrith Mora, and once you reach the statue of Azura head east. In order to reach the master trainer for this skill, you will need to wander all the way to the monastery of Holamayan - home to one of the Dissident priests, who are hunted by the temple due to refuting the Tribunal’s beliefs. It isn’t exactly everyone’s idea of fun to just keep punching away in an RPG, unless you are the bar-brawl type and easily get surly since this isn’t often the case with adventurers, it might be a better idea to pay in order to build up the skill. The higher you’ve built up this skill, the quicker your opponents will loose fatigue and be knocked down.
With the hand-to-hand skill you can’t damage opponents until you knock them down, at which point they will start loosing health if you keep on hammering them. This skill is mostly a characteristic of monks, being a martial art of sorts.