Japan is an expensive place to stay in and budget accomodation here will be much more expensive than most other countries.
The cheapest accomodation I could find in Iwakuni was 3300 Yen per night at Minami Ryokan (228-334).
4000-5000 Yen will get you a night at Koike Ryokan (228-115), Matsudaya Ryokan (211-819) and the Iwakuni Youth Hostel (431-092).
Accommodation ranges between 3,300 - 50,000 Yen per night. Although the average seems to be 6,000 yen at business hotels and large ryokan.
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