Budget
Hagi Royal Intelligent Hotel
A good business hotel. Amenities include Internet access and a breakfast of rice balls & miso soup. Rooms have private baths, but there's a small public bath available.
Hagi Youth Hostel
Excellent location near the castle ruins. Bike rentals available.
Midrange
Senshunraku
A hot spring inn with easy access to the beach at Kikugahama. The rooms aren't quite sparkling, but the armored samurai mannequins guarding the lobby ought to keep away any troublemakers.
Hagi Honjin
Western and Japanese-style rooms in a hotel eight stories tall, with a rooftop lounge and some very nice public baths.
Top end
Hokumon Yashiki
Elegant Japanese-style rooms with a beautiful garden and outdoor baths. Good seafood dinners as well.
Hagi no yado Tomoe
The height of luxury in Hagi — this is a gorgeous ryokan with a raked-stone garden, onsen, free pick-up from the train station, and more.
If you're planning to splurge on a traditional Japanese inn, Hagi is a great place to do it; the art of the ryokan is taken seriously here, and the atmospheric old quarters are well worth an early morning or late evening stroll. The local ryokan association (http://www.hagi.ne.jp/) has a booking desk at the Hagi Bus Center 9AM-5:30PM, tel. +81 0838-22-7599.