Near the Kii-Tanabe train station, Tanabe boasts with an area of small winding streets with hidden but very good restaurants, traditional and modern alike. There is a homepage to check the best ones. And another one in English. Some places have a cooperation with hotels concerning mutual recommendation, so if you mention your hotel's name, you might be eligible for a free drink or some discounts! Shinbe is highly recommended to try.
Official Government Community Reservation System
Kumano Travel  is the Official Government Community Reservation System of Tanabe City/Kumano Region in Wakayama Prefecture, Japan. This international award winning site is part of the Tanabe City Kumano Tourism Bureau , the government tourism association for the region, focused on creating a high quality sustainable tourism destination open to the world. Detailed information on accommodations in Tanabe are available on the above sites.