Budget
Backpackers Miyajima
In Miyajima-guchi, which is on the mainland close to the ferry terminal. The English-speaking staff hold BBQ, Camping dinner parties. From the station, walk to the ferry terminal and then take a right; follow the road past the waterwheel. There should be plenty of fliers around if you get lost.
Miyajima Tsutsumigaura Camp-jo
A nice campsite at the Tsutsumigaura Beach, about 4 km from the port. Cabins and outdoor grills are available as well. Buses running between the port and the campsite from the morning until six in the afternoon ¥300. There are clean toilets, but no shower: you have to use the bath-house a little way up at the bungalows, for an extra ¥300, and it closes around 8PM. The local deer walk freely around the campgrounds, so don't leave food unattended in the tent while you're away!
Midrange
Kikugawa Guest House
An older building with eight Western and Japanese-style rooms and private baths.
Ryoso Kawaguchi
About ten minutes from the pier. Rooms are Japanese style, with two common baths and a third floor lounge. Japanese or Western-style dinner and breakfast are available for an extra charge.
Kokuminshukusha Mori-no-Yado
A fairly standard Japanese ryokan, but it's run by the government and hence a little more affordable than the competition.
Momiji-so
Five Japanese-style rooms with only basic amenities but lovely forest views and a restaurant with nice outdoor seating.
Kotobuki
Some rooms have private baths.
Mikarikyu
A large, mostly Japanese-style hotel, but a few comparatively dingy Western-style rooms are available. Rooms have private baths, but two impressive public baths with views alternate between genders from AM to PM.
Top end
Kinsui Villa Annex
Japanese-style rooms, including ones for single travelers, and a spa with a view. They offer healthy meals that are designed for "light-hearted couples" and "happy ladies" so be prepared to choose appropriately.
Miyajima Grand Arimoto
Sleek new hotel offering Japanese and Western-style rooms. Meals are included in room rate — with cheaper meals for cheaper rooms — though upgrades are available for an extra charge.
Kinsui Villa
Japanese-style rooms with themes based on the view or the decor such as The Cat and The Owl; Western-style rooms available for single travelers. The landlord takes particular pride in his hot springs.
Iwaso
An old-school Japanese ryokan dating back to 1854, and probably the best digs on the island. Pick-up available from the pier if you call ahead.
Watanabe Inn
A small inn close to Daisho-in, a nice spot as long as you don't mind a walk about twenty minutes from the pier. Each room has a private bath made of Japanese cypress wood. The restaurant is particularly well regarded.
Jukeiso
Very much a luxury stopover, but well worth the cost. Includes choice of Japanese or European dinner and a Japanese breakfast. Good views over the shrine and torii from the tatami rooms and their restaurant/lounge.
Benten-no-Yado Itsukushima
Japanese-style rooms with, as the name suggests, great views of Itsukushima and the floating torii. They also offer some excellent amenities such as a true onsen, rock bath, and massages.
Accommodation on Miyajima is uniformly expensive, and most people on a budget choose to day-trip from Hiroshima instead. But if you can swing it, a night here is definitely worthwhile, as the island is much nicer without the flag-waving, megaphone-equipped tour groups that descend during the day.