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28 Billion Yen Debt Pushes Fukushima's Hawaiians Resort Into Foreign Hands

FUKUSHIMA, Sep 23, 2025 (News On Japan) - Spa Resort Hawaiians, a sprawling tropical-themed facility in Iwaki, Fukushima Prefecture, has long been cherished as “Japan’s Hawaii.” The indoor resort, which features Japan’s tallest water slide with a 40-meter drop, attracts about one million visitors each year as a family-friendly theme park.

Its main attraction remains the Hula Girls, a troupe of 43 dancers performing three times daily. Next year, the resort will mark its 60th anniversary.

The resort is operated by Joban Kosan, a local company. President Sekine, a Fukushima native who took the helm last year, recalls childhood memories at the park. “I could never go to the real Hawaii, so this place became my Hawaii, filled with family memories,” he said. Yet as president, Sekine faced the harsh reality of running a facility under severe financial strain.

Hawaiians was forced to close for more than six months following the March 2011 Great East Japan Earthquake, which caused extensive damage. Later, the COVID-19 pandemic led to another three-month closure, driving the resort deeper into debt. The combination of these crises left the company burdened with around 28 billion yen in liabilities. On top of that, the aging of the facilities made new investment difficult.

The turning point came last November, when Fortress Investment Group, a US private equity firm managing over 7 trillion yen in assets, launched a takeover. The firm had already made headlines in Japan in 2023 with its acquisition of Sogo & Seibu. Fortress gradually increased its stake in Joban Kosan until it surpassed 85 percent, solidifying control of Hawaiians.

“We were cautious at first, but our aim is genuine revitalization,” said Fortress executive Shunsuke Yamamoto, who spearheaded the acquisition. “Given the current finances, it would be difficult for Hawaiians to thrive for another 50 or 60 years. Many Japanese now travel to the real Hawaii, so this resort needs a bold transformation.”

Fortress is no stranger to hotel turnarounds. It has acquired and revived numerous underperforming resorts across Japan through its subsidiary, MyStays Hotel Management, where Yamamoto serves as chairman. In 2021, it took over most of Japan Post’s Kanpo no Yado inns, rebranding them as Kamenoi Hotels and lifting occupancy rates significantly. Fortress also bought the Hotel New Akao in Atami, transforming its seaside location into a destination for marine activities.

Today, Fortress owns 184 hotels nationwide, making it the sixth-largest operator in the industry. Its strategy combines large-scale capital investment with localized enhancements to maximize each property’s unique strengths. “There are many excellent facilities across Japan that face closure due to delayed investment. Supporting them is our mission,” Yamamoto said.

For Hawaiians, Fortress has already begun reviewing operations. Yamamoto, who once visited as a guest, returned to inspect every corner of the resort, from the entrance and food courts to the shops, pointing out areas that needed modernization. He has been appointed chairman of Joban Kosan and promises significant investment to ensure the resort’s long-term competitiveness.

At the same time, Fortress has acquired Seagaia Resort in Miyazaki, once a symbol of the bubble economy, with plans to rebuild it as a family-oriented resort. The company’s broader ambition is to reshape how Japanese people travel and to modernize aging resorts across the country.

While many locals welcome the injection of capital, others worry that the unique history and atmosphere of Hawaiians could be lost. “It’s scary because we don’t know what will happen,” one resident said. “I hope the history and spirit of this place won’t disappear.”

Source: テレ東BIZ

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