After the first turn to the SW, more fiends will appear. Head north then loot the chest in a small dead-end to the left. Continue forth and defeat another ground of fiends. There are no more items of interest here so continue forth to the next area (Central Square).
There are no items in this area so go ahead and make your way to the hotel to the west. Several groups of fiends will appear along the way so get rid of them to progress. Make your way to the hotel to trigger the cutscene and complete the chapter.
The hotel will be your safe zone and your main base of operations in Ruswal. Some of the things you can do are the following:
You'll receive three relics (accessories) from him as well: Mobius Ring, Shell Cameo, and Beast King's Mane. Make your preparations then head out through the door. Select the Old Count's Rose Garden as your next destination.