I personally feel this hotel is a good starting point especially if you love exploring by walking.
From Hakodate Train Station, it is about a 5-10 min walk. Along the way, you'll find a number of food options (kaizen-don selection) at Hakodate Asaichi that is best for breakfast/lunch and also Lucky Pierrot (local restaurant burger chain with wide selection) across the street. There is also a Lawson's convenience store nearby.
The hotel is within walking distance (<5 min) from the Morning Market (where you can get all the preserved seafood for souvenirs) and also the must-try Uni Marumaki's (price range Y3500 and up for the recommended items). Further up, after about 20 minutes walking, is the Red Brick Warehouses (Lots of souvenir shopping and some of the more-branded food to try between meals - cakes, ice cream etc). The Hakodate Seafood Market is also around this area where fresh sashimi is available. I was surprised to find similarly priced oysters (Y900 for 2) here that's of better quality than at the Morning Market.
I've concentrated so far on the plentiful food options nearby because the breakfast buffet had very, very limited options and limited seating (see last photo). The main option I could recall was a selection of onigiri with different flavours, some western-type food, and bread. I think it's fine because Hakodate is really a foodie's place so you should try eating outside the hotel (especially sashimi and kaizendon).
The hotel itself is very clean and has all basic amenities that serve it's purpose.
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