ONOMICHI U2 opened in March 2014. The building, a former shipping warehouse known as Prefectural Warehouse Uwaya No.2, was fully renovated and given a new lease of life. Based on the design concept of “a small town inside a city,” the facility boasts a hotel, restaurant, bar, café, bakery, lifestyle shop and a cycling store all under one roof. The name U2 comes from combining the ‘U’ and the ‘2’ from the original name of the building.

ONOMICHI U2 covers an area of roughly 2,000 square meters. It was designed to capture the essence of Onomichi and invoke a sense of continuity with the city surrounding it. The design concept for the interior takes its cue from Onomichi's small shops and alleyways, transforming this warehouse into a small town. The layout of ONOMICHI U2 is inspired by the city’s iconic shopping arcade, encompassing a long central path flanked with shops and a café leading all the way to HOTEL CYCLE. The open design creates a space where both visitors and staff naturally interact. Wood, mortar, and steel frames were the main materials used in the renovation - an homage to the city’s traditional wooden houses and thriving shipbuilding industry.

As you can guess from the name, HOTEL CYCLE was designed to be cyclist-friendly and boasts bike hangers fitted in all 28 rooms. Guests who come without their own bicycles, can rent bikes from the hotel or the Giant Store inside ONOMICHI U2.

We believe the cooperation and understanding of the local community is vital when creating a new business and bringing fresh energy to the city. As an initial step, we collaborated with several residents to develop new, local products. We have promoted and incorporated these products in our business model, leading to more visibility and brand awareness for Onomichi, the Shimanami Kaido and the Seto Inland Sea as a whole.

The city has a long history. During the Heian period (794-1185), rice was used as payment for taxes and rice from the surrounding Bingo region was ferried through Onomichi and loaded onto ships. During the Muromachi period (1333-1573), Onomichi became a hub for trade with the Asian continent. In the Edo period (1603-1868), Japan isolated itself from the rest of the world bringing international trade to a halt, but in its stead, the city became a vital port along the Kitamae-bune trade route that brought rice and products from Tohoku and Hokkaido in the north, through Shimonoseki and the Seto Inland Sea to Osaka. In 1939, there was a large-scale development of the western quay and pier. Prefectural Warehouse Uwaya No.2 was built as part of this development.