Nagano hotels

I'm looking to be in the Nagano area for 2 nights next year, but I'm finding the hotel options quite sparse. Seems to be a few larger/chain hotels near the station and that's mostly it. I stayed in Nagano many years ago just a night at Chisun Grand Nagano I think, it wasn't memorable.

Wondering why the options are so limited? My guess is that Nagano is more of a transportation hub en route to elsewhere. In comparison, Takayama and Kanazawa which have developed quite a bit and become more on the tourist map, seem to have nicer and newer hotels.

Any recs on hotels in Nagano are appreciated as well.

Indeed, Nagano City has no outstanding hotels. Almost all cities (apart from Tokyo, Yokohama. Kyoto and Osaka) were like that 20 years ago, but the situation improved a lot in many other tourist destinations, such as Kanazawa. Nagano City has not yet been among them. But there are many great hot spring ryokan relatively nearby, including in Yudanaka/Shibu, Nozawa and others.

What kind of hotel are you looking for?
I stayed at Tokyu Rei Hotel Nagano, across from the Nagano train station. It wasn't a luxury hotel, but pretty decent and convenient (aside from the lobby being on the 2nd floor which you can access with the elevator or escalator, as I recall). As mentioned, Nagano City itself is not a tourist destination, but Nagano Prefecture is pretty big and has lots of tourist attractions. You end up taking local trains or buses from Nagano Station, so staying close to the station is recommended.

Anything that is convenient and with breakfast options. We will stay at ryokans and places with nice onsen elsewhere in Nagano/Gifu.
Yes, in my searching I am coming across Hotel Metropolitain, Tokyu REI, Chisun Grand, JAL City, Dormy Inn.

When I stay in the city I use the Metropolitan, rated as the best in town by my local friends. There isn't much because the people that visit/stay are often Japanese business people and they just need something cheap and functional. Plus, it's not exactly a big city
Being close to Tokyo, the market for many fancy places just isn't there.
The majority of accommodation is closer to the attractions of the prefecture and more ryokan style. I have my favourites outside of the city, and while there are some very nice (and expensive) places, in the smaller cities there is not much of good quality.

I suppose the Metropolitan is the best, and the location is excellent, but it is far from the best Metropolitan hotel in the chain. The Dormy Inn is reasonably good, but it always seems overpriced to me, especially on weekends. My personal favorite is the Island Hotel when I can get a twin room there, but it won’t appeal to most foreign tourists. It is an old-school Japanese business hotel, not a chain property, and it is older and “unimproved,” but it has a daiyokujo and the rooms are comfortable. It offers a modest but free Japanese breakfast. But if you are looking for something that is even modestly upscale, I’d say go for the Metropolitan, or if you want bathing facilities maybe the Dormy Inn. They have a pretty good breakfast that is reasonably good value for the price.

I was also unimpressed by the Chisun Grand, even though they had just renovated their rooms when I stayed there. I thought the room design was kind of poor. They did have an excellent breakfast, though.

If you don’t mind tiny rooms in a budget business hotel, the Nagano Dai-Ichi Hotel reportedly has a very nice rooftop rotenburo. But only for men… It’s really cheap and might work if you are male and all you want is a bed and a nice bath. (I haven’t stayed there myself.)

You might be looking too early. Often hotels don’t open their booking until a few months before.

In regards to hotel recommendations I only stayed at the DormyInn at Nagano station and would go there again thanks to the onsen and rotenburo on the top floor (plus free ice cream).

I stayed in Hotel Metropolitan Nagano last August. The location is superb as it’s connected to Nagano Station. In terms of rooms, I felt it was bigger than those in Tokyo (single room). It wasn’t crowded at all and was quiet. Maybe it’s the off-season?

I've stayed at the Dormy 2x and the Metropolitan once. The rooms at the Dormy are a little small, but I like the roof top bath. It's a very easy walk from the station. The Metropolitan has larger rooms and the beds are a bit softer. I was pleased that they had a coin laundry on our floor, which was useful. I'd probably stay in whichever was cheaper if I stayed overnight in Nagano again.

I think the issue is a lot of tourists (foreign and domestic ) go to Takayama or go to Kanazawa, but most just pass through Nagano City going to somewhere else in Nagano Prefecture vs. staying overnight in Nagano City. I like Nagano City. I think it's underrated.