The hotel is centrally located and easy to find. I won my trip to Beppu, so couldn't pick my accommodation for myself, but I was extremely satisfied with Hotel Arthur. The rooms were small, but that's Japan. They had their own bathrooms and the hotel has two onsen baths for their guests as well. Breakfast was included and you could select "western-style" or "Japanese-style".
The hotel offers free internet access and has a number of other features too.
The staff were friendly and helpful and gave us some great information and tips. If you're looking for a hotel (rather than a Japanese style inn), then I highly recommend Hotel Arthur.
Unique Quality: My room faced the ocean, so I had a great view of Mt. Takasaki and the ocean (ignoring the buildings stretching before me a little).
Directions: 3 min. walk from East Exit of JR Beppu Sta.
Walk down the main road in front of you to the first set of trafic lights, turn right. The hotel is just around the corner on your left.
I have attached a map in my pictures (from their website).
1-12-1 Kitahama, Beppu
12-8 Ekimae-cho, Beppu
1-2-5 Kitahama, Beppu
13-4 Ekimaecho, Beppu
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