This is ryokan country, but unmistakably modern architecture and a stunning selection of contemporary art mark Terrace Midobaru as something out of the ordinary. All the same, the classical virtues of Japanese hospitality are very much in evidence here, from the soothing calm of the clean-lined architecture and design to the spring-fed baths and the devotion shown by the restaurant’s team — even though the cuisine, with its Italian influences, is unusual. The hillside position affords an impressive view of the city of Beppu and the bay beyond, and the city’s “eight hells,” its colorfully named geothermic hot springs, are a major attraction.