Thanks @Farcher!! With your suggestion, I got it! I'm feeling really pumped right now. Since I had to type this up, I figured I'd share here as well. The following is the set of algebraic steps to reach the final answer.
Let $e^\eta = b$. Then
\begin{align*}
\frac{(x+a)^2 + y^2}{(x-a)^2 + y^2} &= e^{2\eta} \\
\end{align*}
becomes
\begin{align*}
\frac{(x+a)^2 + y^2}{(x-a)^2 + y^2} &= b^2 \\
\end{align*}
Start by expanding the binomials, bringing the denominator to the RHS, and distributing $b^2$:
\begin{align}
\frac{(x+a)^2 + y^2}{(x-a)^2 + y^2} &= b^2 \\
\frac{x^2 + 2xa + a^2 + y^2}{x^2 - 2xa + a^2 + y^2} &= b^2 \\
x^2 + 2xa + a^2 + y^2 &= b^2x^2 - b^22xa + b^2a^2 + b^2y^2
\end{align}
Now, group similar terms, resulting in the factors of $(b^2+1)$ and $(b^2 -1)$. Note that the parentheses in the first line below aren't necessary, but are used to help visualize the groupings of similar terms:
\begin{align}
(b^22xa + 2xa) &= (b^2x^2 - x^2) + (b^2a^2 - a^2) + (b^2y^2 - y^2) \\
2xa(b^2+1) &= x^2(b^2 - 1) + a^2(b^2 - 1) + y^2(b^2 -1 ) \\
2xa(b^2+1) &= (x^2 + a^2 + y^2)(b^2 -1 )
\end{align}
Divide both sides by $(b^2-1)$ and do some regrouping:
\begin{align}
2xa\frac{b^2+1}{b^2 - 1} &= x^2 + a^2 + y^2 \\
x^2 - 2xa\frac{b^2+1}{b^2 - 1} &= -a^2 - y^2
\end{align}
And now the ninja trick. Complete the square, and then bring $y^2$ to the LHS:
\begin{align}
x^2 - 2xa\frac{b^2+1}{b^2 - 1} + a^2 \left(\frac{b^2+1}{b^2 - 1} \right)^2 &= a^2 \left(\frac{b^2+1}{b^2 - 1} \right)^2 -a^2 - y^2 \\
\left(x - a \frac{b^2+1}{b^2 - 1} \right)^2 + y^2 &= a^2 \left(\frac{b^2+1}{b^2 - 1} \right)^2 -a^2
\end{align}
At this point, the LHS is in the desired form, so I will suppress it for the moment as we continue to manipulate the RHS. First, pull a factor of $a^2$ from both terms in the RHS. Then, combine the terms. Expand the binomials. And notice that most of the terms cancel in the numerator, except the two $2b^2$ terms which end up adding. Then, since each individual factor is squared, we can "pull out" the square:
\begin{align}
\left(x - a \frac{b^2+1}{b^2 - 1} \right)^2 + y^2 &= a^2 \left( \frac{(b^2+1)^2}{(b^2 - 1)^2} -1 \right) \\
&= a^2 \frac{(b^2+1)^2-(b^2 - 1)^2}{(b^2 - 1)^2} \\
&= a^2 \frac{(b^2)^2+2b^2+1 - ((b^2)^2 - 2b^2 + 1)^2}{(b^2 - 1)^2} \\
&= a^2 \frac{4b^2}{(b^2 - 1)^2} \\
&= \left(\frac{2ab}{b^2 - 1} \right)^2
\end{align}
Both LHS and RHS are in the desired form at this point. So we observe that $(b^2 +1) = b(b + b^{-1})$ and $(b^2 -1) = b(b - b^{-1})$:
\begin{align}
\left(x - a \frac{b(b+b^{-1})}{b(b - b^{-1})} \right)^2 + y^2 &= \left(\frac{2ab}{b(b - b^{-1})} \right)^2 \\
\left(x - a \frac{b+b^{-1}}{b - b^{-1}} \right)^2 + y^2 &= \left(\frac{2a}{b - b^{-1}} \right)^2
\end{align}
Replace each $b$ with the original $e^\eta$, and then apply the hyperbolic trig identities, and simplify:
\begin{align}
\left(x - a \frac{e^\eta+e^{-\eta}}{e^\eta - e^{-\eta}} \right)^2 + y^2 &= \left(\frac{2a}{e^\eta - e^{-\eta}} \right)^2 \\
\left(x - a \frac{2 \cosh \eta}{2 \sinh \eta} \right)^2 + y^2 &= \left(\frac{2a}{2 \sinh \eta} \right)^2 \\
\left(x - a \coth \eta \right)^2 + y^2 &= \left(\frac{a}{ \sinh \eta} \right)^2
\end{align}