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

Toyota Motor will begin operating fully autonomous taxis in 2027 through a partnership with U.S. self-driving technology company Waymo, marking a major step in the Japanese automaker's efforts to expand driverless transportation services.

Mount Fuji has received its first snowcap of the season, the Japan Meteorological Agency announced on October 30, after temperatures at the summit plunged to minus 9.4 degrees Celsius, marking the arrival of winter conditions on Japan's highest mountain.

U.S. intelligence agencies suspect that a Chinese female intelligence operative developed a close relationship with Nvidia CEO Jensen Huang in an attempt to obtain confidential corporate and U.S. government information, according to a report published by The New York Times on October 29th.

The Japanese government has asked major telecommunications operators to forcibly block access to websites believed to contain personal information stolen in a cyberattack on GMO, it emerged on October 29th, as authorities moved to prevent further exposure of sensitive data online.

Typhoon No. 31 was located near Minamitorishima Island in the Pacific Ocean, as of 3 a.m. on October 30, and was expected to approach the Ogasawara Islands south of Tokyo over the October 31-November 1 weekend while maintaining very strong intensity, bringing a growing risk of dangerously high waves, powerful swells and extremely rough seas.

MEDIA CHANNELS
         

MORE Business NEWS

A series of cyberattacks has exposed millions of personal records belonging to customers of major Japanese companies, including Muji, Matsuya and All Nippon Airways, as well as individuals connected to the Foreign Ministry, while cybersecurity experts investigating a separate attack involving GMO say a serious mistake by the hackers may provide crucial clues to their identities.

Japan's furniture and home goods retailer Nitori opened what it describes as its largest store in the world on October 30th in Osaka's Chayamachi district, bringing a major new retail destination to an area east of Hankyu Osaka-Umeda Station known for its youth culture, fashion boutiques, and specialty shops.

Japan's Nikkei 225 Stock Average plunged 1,369.36 points, or 2.12%, to close at 63,290.11 at 3:30 p.m. on Friday, October 30, ending a three-day winning streak as a sharp selloff in semiconductor and artificial intelligence-related shares swept through the Tokyo market, while the Bank of Japan's decision to leave interest rates unchanged failed to restore investor confidence.

The Bank of Japan announced on October 30th that underlying inflation has effectively reached its 2% target for the first time since the goal was introduced in 2013, marking a major milestone in the country's efforts to achieve sustained price growth, while keeping its benchmark interest rate unchanged at 1.25% as policymakers assess the impact of last month's rate increase.

Halloween celebrations across Japan are becoming increasingly expensive as October 31 approaches, with costume prices nearly doubling over the past five years and the average spending budget rising to 8,148 yen, prompting more people to find creative ways to enjoy the annual event without stretching their finances.

Hands Shibuya, one of Tokyo's best-known variety stores, will close on November 15 after 48 years in business, bringing an end to a shopping destination famous for its enormous selection of innovative household goods, stationery and unusual gadgets, with around 100,000 products still filling its shelves in the final weeks before closure.

Tokyo stocks extended their recovery on Thursday, October 29, with the Nikkei 225 closing at 64,659.47 points at 3:30 p.m., up 705.28 points, or 1.10%, from the previous session, as renewed buying of semiconductor and artificial intelligence-related shares helped the benchmark record its third consecutive daily gain ahead of the Bank of Japan's monetary policy decision.

GMO has announced a reward totaling approximately 150 million yen for information leading to the identification of hackers responsible for a cyberattack on its systems, while also pledging compensation to customers whose personal information has been exposed, as Japan faces a growing wave of cyberattacks targeting major companies.