Are Japan's smaller cities seeing increased hotel interest?

Tokyo-based Orix Real Estate Corporation has acquired the Hotel Banso, in Yunokawa-onsen, Hakodate City, Hokkaido.

The Hotel Banso is a Japanese hot spring inn facility that has one of the largest baths in the Yunokawa-onsen area. 

This acquisition is the first venture by Orix Real Estate into Japanese inns in Hokkaido, and is timed to capitalize on the Hokkaido Shinkansen, which will begin in late March and is expected to attract a large number of international visitors to the city. 

Virtual Event

Hotel Optimization Part 3 | Available On Demand

With 2020 behind us and widespread vaccine distribution on the horizon, the second half of the new year is looking up, but for Q1 (and most likely well into Q2) we’re very much still in the thick of what has undeniably been the lowest point of the pandemic. What can you be doing now to power through and set yourself up for a prosperous 2021 and beyond? Join us at Part 3 of Hotel Optimization – A Virtual Event, now available on demand, for expert panels focused on getting you back to profitability.


The company is reportedly considering a total refurbishment of the facility.

In September, Bloomberg noted the rise in interest in Japan's smaller cities. The Hoshino Resort Co. President Yoshiharu Hoshino said at the time that the 109-year-old company would like to expand into places like Hakodate in the Hokkaido prefecture; Sendai, north of Tokyo; and the western city of Kobe.