What should I pay attention to when investing in small hotels in Japan?

If investors want a piece of the action, they need to know the Japanese investment market very well. Investment in accommodation facilities in Japan can be roughly divided into homestays, hotels and simple hotels.

1. Invest in Japan B&B.

/kloc-After the Law on Residential Accommodation came into effect in June, 2008, the management of homestays in Japan became strict. To operate B&B, you need to apply for B&B qualification, and you are only allowed to operate 180 days a year. This has severely hit many homeowners.

"Only allowed to operate for 180 days" does not mean that you can really do so many days, which means that the actual operating days will only be less. Moreover, due to hygiene, noise and other problems, many apartment management combinations in Japan are not allowed to open homestays.

2. Investing in Japanese hotels/guesthouses

At present, many Japanese hotel/hotel investors will choose the form of acquisition, that is, buying hotels/hotels with hotel/hotel qualifications in Japan and operating them. As a popular business project, hotels/guesthouses have low business risks and meet the requirements for applying for business management visas. However, the upfront investment of Japanese hotels/guesthouses is generally relatively large.

3. invest in Japanese-style simple hotels

Japan's simple hotels gradually began to attract investors' attention, mainly after the management of Japanese homestays became strict. Japanese B&Bs can't operate all the year round, but they can apply for a simple hotel qualification (not a B&B qualification) after transforming their investment objects. In this way, we can not only operate legally in Japan, but also operate all the year round without worries. On the premise of ensuring the sanitary level, the licensing standards of simple hotels have been relaxed to some extent.

If investors want to reduce the initial investment, Japanese simple hotels may be the best choice. If a simple hotel is located in an area with high residential demand, it is not uncommon to generate 2-3 times the income of apartment investment. However, it should also be noted that, unlike long-term rental properties, you need to buy beds, sofas, televisions and other necessary furniture and equipment after investing in simple hotels.