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Where Nature Meets Relaxation: Two Onsen Hotels in Wakayama

Where Nature Meets Relaxation: Two Onsen Hotels in Wakayama

Date published: 26 July 2026

No trip to Japan's Kii Peninsula is complete without experiencing one of the region's famous hot springs. After a day spent exploring ancient pilgrimage routes, sacred shrines, dramatic coastlines, and mountain forests, there’s no better way to unwind than soaking in natural hot spring waters that have served as a relaxing recharge oasis for travelers for centuries.

Wakayama Prefecture is home to some of Japan's most unique onsen destinations, ranging from oceanfront resorts overlooking the Pacific to secluded mountain retreats surrounded by nature. Whether you're seeking modern luxury, traditional Japanese hospitality, or simply a place to relax after walking the Kumano Kodo, the region offers accommodations that are destinations in their own right.

Whether you prefer watching waves crash against the coastline from a seaside cave hot springs or soaking beneath the stars in the mountains, these two hotels showcase the diversity of Wakayama's onsen culture and make for unforgettable destinations for any journey through the Kii Peninsula.

(Main image courtesy of Hotel Urashima)

Table of Contents
  1. Nanki Katsuura Onsen Hotel Urashima: Japan's Cave Onsen Resort by the Sea
  2. Cave Hot Springs by the Sea
  3. A New Chapter for Hotel Urashima
  4. Watarase Onsen Hotel Sasayuri: A Traditional Retreat in the Mountains of Kumano
  5. Find Your Next Onsen Getaway in Wakayama

Nanki Katsuura Onsen Hotel Urashima: Japan's Cave Onsen Resort by the Sea

The experience at Hotel Urashima begins before you even check in. Unlike most hotels, guests arrive by ferry from Kii-Katsuura Port, turning the journey itself into part of the adventure. As the boat glides across Kii-Katsuura Bay, passengers are treated to panoramic views of the coastline, fishing boats, and the forested hills that surround the harbor. The approach offers a unique first impression of the hotel, which is built directly into a peninsula jutting into the Pacific Ocean.

(Photo credit: Hotel Urashima)
(Photo credit: Hotel Urashima)

The short ferry ride serves as a welcome transition from the outside world, creating the feeling of traveling to a secluded island retreat. As the hotel gradually comes into view against the rugged coastline, anticipation builds for what lies ahead. By the time you step onto the dock, it's clear that Hotel Urashima is far more than just a place to stay—it's a destination in its own right and the perfect introduction to one of Wakayama's most unique onsen experiences.

The Property: Views from Sea Level to the Mountaintop

The scale of Hotel Urashima was one of the first things that surprised me. The property is divided across several interconnected sections, with accommodations and facilities at sea level as well as a 33rd-floor mountaintop area high above the bay. Moving through the resort felt less like walking around a typical hotel and more like exploring a small complex built into the coastline.

Even though my room was located in the lower section, I could still access the outdoor viewing area at the top of the mountain. I arrived too late to see the sunset, but the nighttime view ended up becoming one of my favorite moments of the stay. Standing above Kii-Katsuura Bay beneath the moon and stars, I could see the lights of the town and the dark outline of the surrounding mountains below. The atmosphere was quiet and still, creating a sense of separation from the noise and constant movement of Japan’s larger cities.

Guests who arrive earlier can use the same area to watch the sunset or wake up for views of the sunrise over the Pacific. However, even after dark, the combination of fresh air, distant lights, and open sky made the trip to the top worthwhile. As someone who lives in Tokyo, spending the night in such a quiet, secluded place, where the moon was the only light illuminating the ocean, felt like a peaceful escape from the pace and brightness of everyday city life.

Facilities at a Glance
  • Around 400 total rooms
  • Styles: A mix of classic Japanese tatami rooms, standard Western beds, and mixed Japanese-Western rooms
  • 5 dining venues offering variety from buffets to fine dining

Guest Room: Traditional Japanese Accommodations

The Honkan-Washitsu (Japanese style room in the main building) continued the traditional atmosphere of the stay. Instead of a standard Western hotel layout, it featured tatami mat flooring, low furnishings, and a spacious Japanese-style interior. The room felt open and uncluttered, giving me more space to relax than I typically expect from a hotel room in Japan.

The windows looked out toward Kii-Katsuura Bay, allowing the surrounding water and mountains to remain part of the experience even while I was inside. For international travelers who have never stayed in a ryokan-style room, this provides an approachable introduction to traditional Japanese accommodations while still offering the amenities of a large resort.

One of the most memorable touches of the ryokan experience was returning from dinner to find that the staff had prepared my futon while I was away. Since the hotel already knew my scheduled dining time, everything was ready by the time I returned to my room—a thoughtful detail that came as a pleasant surprise. The hotel also provides each guest with a yukata-style robe to wear throughout the property, and seeing other guests walking around in traditional clothing added to the immersive atmosphere of the stay.

Dining: A Taste of Kumano

One of the highlights of staying at Hotel Urashima is the extensive all-you-can-eat buffet that showcases the flavors of the Kumano region. Guests can sample local specialties such as Wakayama ramen and meharizushi, a traditional rice dish wrapped in pickled mustard leaves that has long been associated with the Kumano area. The buffet features a wide variety of Japanese cuisine, including a charcoal grill station serving freshly prepared skewers and other regional dishes.

The clear highlight for me was the fresh Kuroshio tuna carving station. Kii-Katsuura is known for tuna, and watching it being cut and served as sashimi made the regional connection feel much more immediate. I returned to the station several times during dinner and probably ate more tuna than I had originally planned. Out of everything available at the buffet, it was easily the most memorable part of the meal.

The drink selection was equally extensive, with beer, wine, sparkling wine, regional sake, and fresh juices included. After trying the savory dishes, I finished with a selection of Japanese sweets and other desserts. By the end of dinner, I understood why the buffet is one of the major parts of the Hotel Urashima experience rather than simply a convenient meal for overnight guests.

Bathing Facilities at a Glance
  • Bath Facilities: 6 distinct baths (which includes the 2 famous natural cave baths)
  • Spring Sources: 10 private spring sources exclusively supplying the hotel
  • Hot Spring Type: Sulfur-containing Sodium/Calcium-Chloride spring (weakly alkaline, hypotonic, and high-temperature)

Cave Hot Springs by the Sea

The centerpiece of Hotel Urashima is its famous cave hot spring, a truly unique onsen experience unlike any hot spring I had experienced before. Built inside a natural seaside cave carved into the cliffs of the Kii Peninsula, the bath allows guests to soak in mineral-rich waters while gazing out toward the Pacific Ocean creating an atmosphere that felt both peaceful and powerful. As waves crash against the rocks just outside the cave entrance, the sound echoes throughout the chamber, creating a relaxing atmosphere that blends the power of nature with the tranquility of an onsen. Unlike an indoor bath where the outside environment disappears, this onsen made the surrounding coastline impossible to ignore. The ocean was not just something to look at, but rather something that could be heard and felt throughout the experience.

(Photo credit: Hotel Urashima)
(Photo credit: Hotel Urashima)

The experience feels both secluded and connected to the surrounding landscape. Rather than being enclosed within a traditional bathhouse, guests are immersed in a natural environment where the ocean is never out of sight or earshot. The combination of warm spring water, cool sea air, and the rhythmic sound of the waves creates a sense of calm that is difficult to replicate elsewhere.

(Photo credit: Hotel Urashima)
(Photo credit: Hotel Urashima)

This was easily the defining moment of my stay. Hotel Urashima has impressive views, spacious rooms, dining, and entertainment, but the sensation of soaking inside a seaside cave while listening to the Pacific is what makes the resort truly unique. For many visitors, this cave onsen is the defining feature of Hotel Urashima and the reason to stay here in the first place. Few places offer the opportunity to relax in a natural hot spring while surrounded by rugged coastal scenery, making it one of the most memorable and unique onsen experiences in all of Wakayama.

A New Chapter for Hotel Urashima

As impressive as Hotel Urashima is today, the resort is preparing for an exciting new chapter. Following a major renovation project that has been underway throughout 2026, the hotel is scheduled to celebrate its grand reopening on August 1, 2026, with newly renovated facilities, including a new French restaurant and additional onsen offerings for guests to enjoy. The renovations are part of a broader effort to enhance the guest experience while preserving the unique character that has made Hotel Urashima a landmark destination in Kii-Katsuura for generations.

Hotel Urashima offered more than I expected from a one-night stay. The traditional Japanese-style room, mountaintop views, regional buffet, and extensive facilities gave me plenty to experience without leaving the property.

However, the cave onsen was what made the stay unforgettable. Listening to the waves echo through the cavern while soaking beside the Pacific created a connection to the landscape that I have rarely felt at a hotel. It was relaxing, but it also captured the rugged natural character of the Kii Peninsula. For travelers exploring Kumano, Nachi Falls, or the southern coastline of Wakayama, Hotel Urashima is more than a convenient place to spend the night. It is a destination for anyone who wants to experience Japanese onsen culture in a setting that could only exist along this particular stretch of coast.

  • Nanki Katsuura Onsen Hotel Urashima
    南紀勝浦温泉 ホテル浦島
    • Address 1165-2 Katsuura, Nachikatsuura-cho, Higashimuro-gun, Wakayama View Map
    • Original source: Rakuten Travel

    Vacancy search, reservation

    Check with our partner site as the latest rates, rate details, and guest room requirements may vary.

Watarase Onsen Hotel Sasayuri: A Traditional Retreat in the Mountains of Kumano

If you prefer staying in the mountains rather than beside the sea, Watarase Onsen Hotel Sasayuri offers a peaceful alternative to the larger coastal resorts of the Kii Peninsula. Surrounded by the forests and mountains of the Kumano region, the ryokan is only about a seven-minute drive from Kumano Hongu Taisha, making it a convenient retreat after visiting the shrine or exploring the nearby Kumano Kodo pilgrimage routes. The quiet surroundings and intimate design create a slower, more personal experience that feels closely connected to the natural and spiritual character of Kumano.

Watarase Onsen Hotel Sasayuri combines the intimate charm of a boutique ryokan with one of Japan's most celebrated hot spring destinations. Traditional architecture, peaceful private hot spring areas, and mountain scenery create an atmosphere that encourages guests to slow down and appreciate the surrounding beauty of Kumano. From the moment I entered, the property felt like a traditional Japanese retreat removed from the pace of modern life. Its wooden interiors, peaceful surroundings, and understated design gave it the atmosphere of a boutique ryokan, making it easy to imagine returning after a long day of hiking the Kumano Kodo and settling into a slower rhythm.

The Property: Stepping into a Traditional Ryokan

Walking through Hotel Sasayuri felt like stepping back into an older, quieter version of Japan. Rather than relying on elaborate decoration, the hotel’s appeal came from its traditional architecture and connection to the surrounding mountain landscape. The interior felt warm and welcoming, with an atmosphere that felt much more secluded than compared to a large and modern resort-style hotel. The property is especially suited to travelers seeking the traditional ryokan experience, where the accommodations, meals, hot springs, and natural surroundings all become part of the stay rather than separate amenities.

Even during a brief visit, I could understand why this type of property appeals to travelers exploring Kumano. After spending the day walking through forests, visiting shrines, or following portions of the Kumano Kodo, returning to a quiet mountain ryokan would feel like a natural continuation of the journey.

Facilities at a Glance
  • Around 30 total rooms
  • Styles: Mixed Japanese-Western rooms
  • 1 dining venue offering lunch and dinner
(Photo credit: Watarase Onsen Hotel Sasayuri)
(Photo credit: Watarase Onsen Hotel Sasayuri)

Private Onsen Experiences in the Mountains of Kumano

As I toured the property, seeing the private onsen facilities was a welcome surprise and added another layer to the traditional ryokan experience. These reservable baths allow couples, families, and small groups to experience the hot springs together without entering a larger communal bathing area. For international visitors who may feel hesitant about their first public onsen experience, the added privacy could also make the experience feel more approachable.

What stood out most was the secluded atmosphere surrounding the baths. Rather than overlooking a city or busy resort complex, the onsen facilities are set against the forests and mountains of Kumano. The combination of warm spring water, fresh mountain air, and natural scenery seemed designed to create a quiet retreat from the outside world. The secluded atmosphere is particularly well suited to couples looking for a peaceful getaway and families who want to enjoy an onsen together. The private setting also allows guests to relax at their own pace, making the hot springs feel more personal than a typical public bath.

Bathing Facilities at a Glance
  • Bath Facilities: 9 distinct baths (which includes indoor baths, a large open-air bath, and 8 private open-air baths)
  • Spring Sources: 100% free-flowing natural hot spring water fed directly from the source
  • Hot Spring Type: Clear, colorless Sodium-Bicarbonate spring (highly regarded for its skin-beautifying properties)

For travelers looking for a more exclusive hot spring experience, these private baths are one of the highlights of a stay at Hotel Sasayuri. Whether you're visiting as a couple, traveling with family, or simply seeking a quiet escape, the opportunity to soak in your own private onsen surrounded by the forests of Kumano makes for a uniquely memorable experience.

Dining: A Traditional Kaiseki Experience

Dining at Watarase Onsen Hotel Sasayuri is centered around kaiseki ryori, a traditional multi-course Japanese meal that showcases seasonal ingredients, regional specialties, and meticulous preparation. Rather than serving a single main dish, kaiseki presents a carefully curated sequence of small courses designed to highlight different flavors, textures, and cooking techniques. Often considered the highest expression of Japanese cuisine, kaiseki emphasizes balance, presentation, and a connection to the local environment.

At Hotel Sasayuri, guests can enjoy an impressive selection of dishes featuring the flavors of the Kumano region. Pictured above is the mini-kaiseki course, where fresh sashimi highlights the area's proximity to some of Japan's most productive fishing waters, while rich wagyu sukiyaki provides a comforting centerpiece to the meal. One memorable dish arrives still sizzling at the table: freshly grilled catch of the day topped with butter that slowly melts into the tender flesh, filling the room with an irresistible aroma. It was clear that each dish had been prepared with careful attention to detail using high-quality ingredients. The presentation was as impressive as the taste, making the meal as much a feast for the eyes as for the palate. The flavors were often simple and understated, but each dish was executed with precision and tasted excellent.

Kaiseki is about more than the quantity of food. The arrangement, tableware, seasonality, and order of the dishes are all part of the experience. At a quiet ryokan such as Hotel Sasayuri, the meal would provide a natural way to end the day—slowly enjoying each course before returning to the hot springs or retiring to a traditional room.

  • Hotel Urashimaso
    ホテル浦嶋荘
    • Address 129 Akanuma, Rifu-cho, Miyagi-gun, Miyagi View Map
    • Original source: Rakuten Travel

    Vacancy search, reservation

    Check with our partner site as the latest rates, rate details, and guest room requirements may vary.

Find Your Next Onsen Getaway in Wakayama

Find Your Next Onsen Getaway in Wakayama

Whether you prefer soaking in a seaside cave bath while listening to waves crash against the Pacific Ocean or relaxing in a private mountain onsen surrounded by the forests of Kumano, both Hotel Urashima and Watarase Onsen offer unforgettable experiences that showcase the best of Wakayama's hot spring culture.

While the two properties provide distinctly different atmospheres, they share a commitment to traditional Japanese hospitality, exceptional dining, and a deep connection to their natural surroundings. Hotel Urashima delivers a one-of-a-kind coastal retreat defined by its famous cave onsen and dramatic ocean views, while Watarase Onsen offers a quieter, more intimate ryokan experience that allows guests to slow down and immerse themselves in the tranquility of the mountains.
For hot spring enthusiasts, these hotels are must-visit destinations in the Kii Peninsula. They are equally rewarding for travelers seeking an authentic Japanese stay experience, combining traditional accommodations, regional cuisine, and centuries-old onsen culture. Together, they represent two of the finest ways to experience the natural beauty, hospitality, and timeless charm of Wakayama.

Written by:
Hikaru Carolin
Hikaru Carolin

Creator

Hikaru Carolin joined Live Japan as a freelance creator in 2026. Born in Japan and raised in Iowa, he returned to Tokyo in 2024 and now uses his bicultural perspective to help travelers feel confident navigating the country he fell back in love with. Through social media, he shares guides, local finds, and cultural context to help travelers feel at home while exploring. On weekends, you’ll find him playing flag football or checking out a neighborhood izakaya.

*This information is from the time of this article's publication.
*Prices and options mentioned are subject to change.
*Unless stated otherwise, all prices include tax.

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