Izunokuni Panorama Park 伊豆の国パノラマパーク, also known as Katsuragiyama Ropeway かつらぎ山ロープウェイ is 10 minutes by bus from Izu-Nagaoka Station 伊豆長岡駅 (170 yen, no SUICA) - a very short walk from the bus stop.
Here you can get absolutely breathtaking views of Mount Fuji, the ocean, and surrounding mountains! Lots of short little easy trails with little things to see.
We spent about an hour up top. The cable car is a bit scary but totally worth it! Highly recommend on a clear day!
There's free foot hot spring as well as a restaurant
both facing Mount Fuji... unbelievable!
We stayed at New Hakkeien ニュー八景園 which is a very short walk away from the ropeway. The 2 special Mount Fuji view rooms we got in their west building (西館特別室 & 西館和室10帖) were excellent -
incredible view from both! Yes, Fuji is just right there! ... plus not really more expensive than your typical ryokan stay! The multi-course meal was also very well done-they did a great job substituting many dishes for one of us who doesn't eat seafood by calling us ahead to confirm (in Japanese). Buffet breakfast has good Japanese and Western items, plus Mount Fuji view again! Reliable WIFI everywhere which is not always a given at a Japanese ryokan!
One room is 10 tatami and the other is much bigger (21 tatami) with a room separated by sliding doors with twin beds although they also set up futons in the very large tatami room for us anyway. Each room has a small tub which you can fill with hot spring water for your own private bath but of course the rooftop public hot spring baths with amazing Mount Fuji view are not to be missed! Even nicer than online photos and really exceeded my expectations!
Definitely pay a little bit more for the bigger room - we were very impressed even though we've stayed at quite a few Japanese hotels and find most ryokan rooms very similar despite price differences. One of the best for sure! Don't be put off by the less than attractive exterior.
The bus stop to the station is just down the hill to the right, diagonally across from 7-11 (10 minutes & 170 yen, no SUICA) - yes you do have to walk up a steep hill for a couple of minutes to reach the hotel.