We have been fortunate enough to travel around Japan twice using a Japanese rail pass and found Kobe to be an excellent base for seeing the Kansai area and further afield.
We always stay in Kobe's Holiday Inn express located near Shin Kobe station and although its rooms are very small it is clean and conveniently located if you intend to travel by train. It's also much cheaper than staying in nearby Kyoto and Osaka. And it is 5 minutes walk from, in our opinion, the best beer vending machines in Japan! Always a pleasant sight at the end of a busy day.
Kobe has several sights worth having a look at. There is a ropeway (cable car) up the nearby mountain. From the top of the ropeway there are wonderful views over Kobe and there is also a pleasant herb garden to stroll through. The ropeway passes over a couple of waterfalls. One of which can be reached in an easy 10 minute walk along a path next to Shin Kobe Station.
Nearby the bottom entrance to the ropeway lies the Kitanocho district of Kobe. This was the area where rich foreigners once lived in the city. Some of their houses are open to the public some have been converted into cafes and shops. The area is very pleasant for a stroll and has lots of fun statues of people playing musical instruments.
Down by Kobe's seafront Meriken Park is worth a look. It has retained as a touching memorial some of the damage caused by the 1995 Great Hanshin Earthquake which killed over 6000 people in the Kobe area. You can still see where some of the harbour walls and walkways were ripped apart and there are several lamposts leaning over at crazy angles. The port tower and maritime museum are located nearby.
Using your Japanese Rail Pass you can make easy daytrips from Kobe to Nara to visit its temples and tame deer, Osaka, Kyoto, Himechi with its famous castle, Hiroshima which is an amazingly peaceful and positive place, Okayama with its castle and gardens and Kurushiki with its canals.
We would definately stay in Kobe again.
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