Looking for where to stay in Otaru? You’ve come to the right place. We included Otaru in our Hokkaido itinerary almost instinctively—we knew it was a historic city with a beautiful canal, but we didn’t imagine we’d feel so good there. The pace is calmer, the atmosphere resembles a European coastal village, and the streets really invite you to stroll leisurely.
Choosing where to stay in Otaru made all the difference in our experience. In this guide, we show you the three best areas to stay, with suggestions for budget, mid-range, and luxury hotels.
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Best Areas to Stay in Otaru
In our experience, these are the three best areas for visitors:
- Otaru Canal (Ironai) – The most picturesque and touristy area, ideal for those who want to be in the historic heart.
- Otaru Station (Inaho) – Practical for those arriving by train and wanting easy access to the rest of the city.
- Marina / Bay Area (Chikko) – Modern and peaceful, great for those seeking sea views and shopping.
Otaru Canal (Ironai)
This is the most iconic area of the city, with stone streets, old warehouses converted into shops and cafes, and the famous canal illuminated at night.
Best Hotels in Otaru Canal
- Budget: Hotel Torifito Otaru Canal – Casual hotel with shared bathrooms and decor inspired by the city’s industrial charm.
- Mid-range: Hotel Nord Otaru – This is where we stayed! Elegant rooms, great breakfast, and a sophisticated restaurant with views.
- Luxury: Hotel Sonia Otaru – Right in front of the scenic Otaru Canal, Hotel Sonia Otaru offers spacious rooms and a great breakfast.
Otaru Station (Inaho)
More practical than charming, but with many restaurants and cafes nearby. Ideal for those traveling with luggage or planning quick trips.
Best Hotels Near Otaru Station
- Budget: GRIDS PREMIUM HOTEL OTARU – Modern and functional, excellent value for money and highly rated.
- Mid-range: Dormy Inn Premium Otaru – Comfortable, with onsen, sauna, and great included breakfast.
- Luxury: Authent Hotel Otaru – Classic-style hotel with a panoramic restaurant and various amenities.
Marina / Bay Area (Chikko)
A more modern area with shopping centers and access to the sea. Perfect for those looking for something quieter with wide views.
Best Hotels in the Marina/Bay Area
- Budget: Cozy Inn OTARU – Hotel made from containers, relaxed atmosphere, and good location to explore the bay.
- Mid-range: Guesthouse Otaru Wanokaze – Simple and welcoming, with sea views and an Italian restaurant.
- Luxury: Grand Park Otaru – Large hotel with sea-view rooms, three restaurants, and a lounge.
Tips for Choosing Where to Stay in Otaru
- Historic center and charm: If you want to be close to the city’s main postcard spots, the Otaru Canal is the best bet.
- Practicality and mobility: Staying near the station makes arrivals and departures easier, especially with luggage.
- Views and tranquility: The Marina is great for those seeking peace and a more contemporary atmosphere.
FAQs – Frequently Asked Questions About Where to Stay in Otaru
What is the best area to stay in Otaru for first-time visitors?
The Otaru Canal area (Ironai) is perfect for first-time visitors. It’s the most picturesque part, with old warehouses, stone streets, and the famous canal illuminated at night. You’ll be right in the heart of Otaru’s most enchanting area.
Is it better to stay near Otaru Station or the Canal area?
If you’re looking for convenience (especially with luggage), choose Otaru Station (Inaho). If you prefer charm and atmosphere, then the Canal area is the better option. The two areas are about a 15-minute walk apart, so it all depends on your priorities.
Are there good ryokan (traditional Japanese inns) in Otaru?
Yes, Otaru has several excellent ryokan, especially in the Canal area. Otaru Furukawa offers a luxurious experience with onsen baths and kaiseki meals overlooking the canal. There are also mid-range options like Hotel Nord Otaru, which combines Western comfort with Japanese hospitality.
What is the best area for families to stay in Otaru?
The Marina/Bay area (Chikko) is great for families, with more space, modern amenities, and shopping centers nearby. Grand Park Otaru has family rooms and good facilities, and it’s just a 10-minute taxi ride from the canal.
