News On Japan

Dozens of Care Homes and Hotels in Japan Shut as Expansion Strategy Unravels

TOKYO - A hotel in Choshi, Chiba Prefecture, known for offering one of Japan’s earliest sunrise views, has remained closed months after its sudden suspension of operations in late 2025, as an investigation reveals the operator behind the property acquired dozens of facilities nationwide, with at least 24 now shut or out of business, raising questions about a business model allegedly tied to visa acquisition for Chinese investors.

The “Hotel New Daishin,” located in Choshi, had been popular for its open-air baths overlooking a natural garden and fresh seafood sourced locally, but inquiries began flooding the local tourism association around November 2025 from guests reporting they could no longer contact the hotel.

A reporter visiting the site on December 26th found a notice reading “Closed Today” posted at the entrance, while the company president, whose firm had acquired the hotel in 2024, apologized and cited aging infrastructure, saying renovations and major repairs were planned with a reopening targeted for the following spring.

However, when reporters returned on April 28th, the building remained dark with no visible signs of construction, and the closure notice still in place.

Further reporting uncovered that the same company had acquired at least 37 hotels and nursing care facilities, mainly across the Kanto region, since 2020, with multiple sources confirming that at least 24 of these facilities are now either closed or have ceased operations.

At a nursing care facility in Funabashi, Chiba Prefecture, acquired in 2023, operations deteriorated rapidly as financial conditions worsened.

The former facility director said rent, utilities, and other expenses went unpaid, adding that demand notices had piled up, and by October 2025 the facility was forced to suspend operations before ultimately shutting down, displacing around 15 residents to other institutions.

The director described the situation as devastating, recalling staff repeatedly asking whether salaries would be paid, something never experienced before, and said the inability to pay wages created what felt like a “living hell.”

A similar pattern emerged at a facility in Kanagawa Prefecture, acquired in 2022 and forced to close in September 2025 after funding cuts, with the former director noting that operating budgets were reduced months before closure on instructions attributed to the company president.

As closures mounted, questions grew over the company’s aggressive acquisition strategy.

Interviews with former employees pointed to what they described as a poorly managed M&A approach, in which facilities were purchased for between 1 million yen and 5 million yen and resold to Chinese buyers for between 40 million yen and as much as 100 million yen depending on location.

According to multiple former staff, the president, who is of Chinese origin, sold acquired Japanese hotels and care facilities at high prices to Chinese owners while retaining operational control through his company.

Despite internal warnings about persistent losses, employees said the president continued acquisitions, reportedly insisting on purchases based on location alone.

Evidence obtained by reporters, including promotional materials from an investment seminar held in Beijing, suggests the business may have been linked to Japan’s “Business Manager” visa system, which allows foreign nationals to reside in Japan if they operate a business.

Former employees said the president promoted investments by emphasizing that ownership of such facilities could facilitate obtaining residency visas, with one stating the primary motivation discussed internally was visa acquisition.

Another former employee added that fees paid by Chinese buyers appeared to include costs related to visa processing.

When confronted in late January about unpaid wages and broader operations beyond the Choshi hotel, the president declined to respond directly, stating only that any interview would require consultation with legal counsel and could not proceed without a lawyer present.

Source: TBS

News On Japan
POPULAR NEWS

Typhoon No. 7, named Mekkhala, formed east of the Philippines at 3 a.m. on June 20 and is forecast to strengthen early next week, while moist air around the storm could later feed a rainy season front stalled near Honshu and raise the risk of heavy rain across western and eastern Japan. The typhoon is expected to move westward to west-northwest, according to updates at 12 p.m. on June 20, approaching the Philippines early next week.

Japan will face Tunisia in its second match of the FIFA World Cup 2026 on June 21 in Monterrey, a northern Mexican city known for its mountains, modern skyline and unexpectedly strong connections with Japan.

Mosquitoes are appearing earlier than usual this year, raising fears of a major summer outbreak as experts warn that warm May weather and repeated light rain have created ideal breeding conditions across residential areas.

Bear attacks and sightings are increasing across Japan, with multiple people injured on June 17 and experts warning that bears are becoming more accustomed to human environments, potentially leading to more dangerous and unpredictable encounters in the years ahead.

JR Central and JR West on June 17 announced pricing and service details for the new private-room seating that will be introduced on the Tokaido and Sanyo Shinkansen from October, creating a new top-tier class above the existing Green Car service.

MEDIA CHANNELS
         

MORE Business NEWS

Bank of Japan Governor Kazuo Ueda has been discharged from hospital after receiving treatment for an infected liver cyst and is expected to return to work on June 23 while continuing outpatient care for about two weeks.

Japan's nationwide consumer price index rose 1.4% in May from a year earlier, staying below 2% for the fourth straight month as lower rice, gasoline, utility and school tuition costs helped curb the overall increase.

The Nikkei Stock Average surged past 71000 on Thursday, closing at a record high for the fourth straight session, as easing tensions in the Middle East lifted investor sentiment while the yen weakened to a nearly two-year low against the dollar.

Nissan Motor announced that it will launch the fully redesigned Kicks compact SUV on June 18, marking the model's first full overhaul in six years as the automaker seeks to strengthen its position in Japan's highly competitive small SUV market.

Japan's return to a world of higher interest rates is reshaping household finances, with a growing number of young homebuyers turning to 40- and 50-year mortgages to afford rapidly rising apartment prices, according to a discussion aired on BS-TBS's Report 1930 on June 17.

Japan's Fair Trade Commission has conducted on-site inspections of six major food manufacturers over suspicions they formed a cartel to coordinate ice cream prices, with authorities investigating whether the companies exchanged information and unfairly adjusted planned retail price increases in response to rising costs.

The Nikkei Stock Average briefly topped the 70,000 mark for the first time on June 16, rising as much as 700 points to an intraday high of 70,020 after the Bank of Japan's decision to raise interest rates matched market expectations, before retreating as investors locked in profits, though the benchmark still ended the day at a record high.

The Bank of Japan decided at its monetary policy meeting on June 16th to raise its policy interest rate for the first time in four meetings, lifting the benchmark rate from around 0.75% to around 1.0%, the highest level in 31 years.