News On Japan

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

News On Japan
POPULAR NEWS

Japan began applying a new numerical alcohol threshold for dangerous driving offenses on July 21, introducing a clearer standard for cases involving impaired driving that could lead to fatal accidents.

Prime Minister Sanae Takaichi's government approved its first annual basic economic and fiscal policy on Tuesday, pledging "responsible and proactive fiscal policy" and envisioning about 370 trillion yen in public- and private-sector investment in strategic industries through fiscal 2040.

A covert network of shuttle tankers is carrying crude through the increasingly dangerous Strait of Hormuz as renewed fighting between the United States and Iran disrupts shipping and raises concerns over how Japan will secure the oil it needs.

Russian Deputy Foreign Minister Andrey Rudenko has criticized moves by Japanese and Ukrainian companies to cooperate on drone technology, warning that such ties would be regarded by Moscow as a "clear hostile act."

The rainy season ended in the Kanto-Koshin and Tokai regions on July 20 as strengthening high pressure brought intense heat across Japan, with temperatures forecast to reach 38 C in Kumagaya, Saitama Prefecture, and Kofu.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks rebounded sharply on July 21 as investors bought back semiconductor and artificial intelligence-related shares after last week’s steep selloff, while attention shifted to upcoming U.S. technology earnings and the government’s new economic policy roadmap.

Japanese cash equities were closed for Marine Day on July 20, leaving investors to assess whether Tokyo can stabilize after last week’s technology-led rout as oil prices rose above $90 a barrel, the yen remained near four-decade lows and global markets braced for another test of the artificial intelligence trade.

Apple has raised prices for iPhones sold in Japan, with the top-end iPhone 17 Pro Max now costing more than 210,000 yen, as the prolonged weakness of the yen increases the local cost of products priced and managed in US dollars.

A tanker carrying about 1 million barrels of Mexican crude oil arrived off Yokkaichi, Mie Prefecture, on the morning of July 17, marking Japan's first such delivery since the Strait of Hormuz was effectively closed.

Tokyo stocks plunged on July 17 as a global selloff in semiconductor and artificial intelligence-related shares pushed the Nikkei 225 into correction territory, while Middle East tensions, higher oil prices and persistent yen weakness added to pressure on investors.

Nissan Motor unveiled a fully redesigned Elgrand minivan on July 17, marking the model's first complete overhaul in 16 years, while introducing a new brand message as the automaker seeks to rebuild its business and revive sales.

Seven & i Holdings is considering investing several hundred billion yen in Zabka Group, Poland's largest convenience store operator, as the Japanese retailer seeks to expand its presence in Europe.

Japanese manufacturers including Fanuc, Yaskawa Electric, Fujitsu, Hitachi, Kawasaki Heavy Industries and Komatsu announced new artificial intelligence initiatives on July 16 as Nvidia expanded its partnerships with Japan's robotics and industrial sectors.