When you visit Hakodate, Japan, there are so many things that you don’t want to miss: meandering through the red-brick warehouse district, taking a walking tour of the European-style churches, sipping your way through the surprisingly solid craft beer scene, visiting Fine Days Burger, and riding the gondola up to Mt. Hakodate for that famous night view. And to get the most out of it, you want make sure that your accommodation is within walking distance to most of the action- so you’re probably wondering where to stay in Hakodate for the first time!

If you’re planning your Hakodate trip, here are my top picks for budget, moderate, and luxury stays— my best recommendations for location, budget, history, and more!

Best places to stay in Hakodate, Japan (where to stay in Hakodate for the first time)!

Budget stays (spend your yen on beer and seafood instead!)

1. HakoBA Hakodate by THE SHARE HOTELS (BEST LOCATION, BEST PRICE, and history + design points!)

This is where we stayed, and I loved it. It’s set inside a historic bank building from 1932, so you get those high ceilings and classic architecture, but with modern minimalist rooms. The rooftop terrace has amazing bay views, and there’s a book lounge where you can relax after a long day of exploring. They also rent bikes! Plus, you’re steps away from the red-brick warehouses, craft beer bars, and the tram to Motomachi. It’s a seriously cool stay and has a great community kitchen and super clean hostel rooms.

Approximately $21–$32 USD ¥3,100–¥4,500

2. Capsule Hotel Hakodate

Capsule hotels can be hit or miss, but this one is clean, comfy, and located right by Hakodate Station. You get a cozy pod, free toiletries, and an actual onsen (hot spring bath)—because even budget travelers deserve a soak! Although it’s a bit of a long walk, it’s an easy tram ride to the red-brick warehouse district.

Approximately $30–$50 USD (¥3,300–¥5,500) per night

Moderate stays

3. HakoBA Hakodate by THE SHARE HOTELS (LOCATION, history, and design points!)

Yes, it’s not a mistake- this Hakodate hotel on the list TWICE! HakoBA Hakodate has both dorms and awesome private rooms. We stayed in the private room, and let me tell you: this must be the MOST SPACIOUS hotel room in Japan. It has a huge, incredible shower with fantastic water pressure, high ceilings, huge cathedral windows, and super comfy beds.

Like I mentioned under the description for the best budget hotels in Hakodate, it’s set inside a historic bank building from 1932. This hotel marries classic architecture with modern amenities and has a really wonderful, helpful staff. If you’re still deciding where to stay in Hakodate for the first time, this place is PERFECT on a moderate budget and you really can’t beat the location!

4. La Vista Hakodate Bay (best onsen views)

This hotel is legendary for one thing: its rooftop onsen. Imagine soaking in steaming hot water with a panoramic view of the bay, the old warehouse district, and the mountains. It’s right near all the best spots—the historic red-brick buildings, the beer halls, and the tram to the European-style churches. Plus, their breakfast spread is loaded with Hokkaido specialties.

Luxury Stays (treat yo self)

5. Bourou Noguchi Hakodate (Modern ryokan bliss)

For a splurge-worthy stay, this high-end ryokan blends traditional Japanese aesthetics with modern luxury. Every room comes with its own private onsen inside the room, so you can soak in peace while sipping on a glass of local Hakodate craft beer (highly recommend). There is literally nothing better than a Japanese beer and onsen in the privacy of your own room, and I can’t recommend enough that you book a ryokan when you’re in Japan (at least once)!

6. Heiseikan Shiosaitei (Ocean views & ultimate relaxation)

If waking up to the sound of waves and having an ocean-facing onsen sounds like your kind of trip, this is the place. I will say- I ONLY recommend staying here over Borou Noguchi Hakodate if you’re booking an ocean view room. The city view rooms aren’t worth it in comparison and are a little dated.

But it’s in Yunokawa Onsen, Hakodate’s famous hot spring district, meaning you can roll out of bed and straight into mineral-rich hot water. This one is also a bit of a long walk to the major attractions, but you can take the tram!

Did this help you with deciding where to stay in Hakodate for the first time? Whether you’re traveling on a budget or ready to splurge on a private onsen, this city has a stay for any budget (and still with impeccable vibes).

Now go book that trip, sip some Hokkaido craft beer, and enjoy one of Japan’s most underrated destinations. 🍺✨ And be sure to check out my other Japan blogs, like:

• Top 10 MUST TRY foods in Japan!
• Experiencing an authentic Japanese tea ceremony in Kyoto, Japan
• Is Japan expensive? Here’s a breakdown of everything I spent in 1 day
• Exploring Japan’s most infamous WWII island 1000km from Tokyo: Chichijima
• How much does Tokyo DisneySea cost and is it worth it? Here’s EXACTLY what I spent in 1 day!