In terms of accomodation options and styles, there are:
1. Western Style hotel (conventional bed and mattress, not tatami floors + futon, and typical hotel bathroom as part of room) With 5 of us, this will mean two, sometimes 3 rooms, and will likely require sharing a double bed and/using a sofa bed/fold down couch to fit us
2. Traditional ryokan
Rooms with tatami mat floors and futon mattresses rolled out on the floors. Sized of rooms can vary and can often fit more people, as futons just fill the floor space during the night and can be folded up by day if you want to use the room.
Ryokans usually have a host, and a common dining area where you can eat breakfast/dinner with other guests, and meals usually prepared by the host
Bathrooms are normally shared between the guests and located off the hallways
3. hostel style
There are a lot of more modern options in this space. The can be shared dorms, or smaller shared rooms with up to 5 or 6 people.
They are bunk bed style, sometimes similar to capsule hotel styles. They have similar shared dining and bathrooms like ryokans.
But you tend to pay per-person, per night.
4. Airbnb /short term stays
There are where you hire a whole house or part of a house.
Styles can be traditional or more western.
Good for groups, although you miss out on having a host… so facilities are all there, but it’s DIY
4. Capsule Hotels
These are similar to bunk room hostels, but are geared to run in single-guest mode, more than groups. It’s like a bunk room was built with library rules: “shhhh! Keep quiet! Don’t Disturb others”