Care homes and hotels in Japan shut as expansion strategy unravels
Source: Hacker News
Background
TOKYO, May 02 – An investigation has revealed that the operator behind a hotel in Choshi, Chiba Prefecture, has acquired dozens of facilities nationwide, with at least 24 now shut or out of business. The expansion strategy appears to be tied to a business model that leverages Japan’s “Business Manager” visa system for Chinese investors.
Hotel New Daishin
- Location: Choshi, Chiba Prefecture
- Notability: Known for offering one of Japan’s earliest sunrise views, open‑air baths overlooking a natural garden, and fresh local seafood.
The hotel was suddenly suspended in late 2025. Guests began reporting that they could no longer contact the property, prompting inquiries to the local tourism association in November 2025.
- December 26, 2025: A reporter found a “Closed Today” notice at the entrance. The company president, who acquired the hotel in 2024, apologized and cited aging infrastructure, promising renovations and a reopening in the following spring.
- April 28, 2026: The building remained dark, with no visible construction and the closure notice still posted.
Nursing Care Facility Closures
Funabashi, Chiba Prefecture
- Acquisition: 2023
- Outcome: Operations deteriorated rapidly as financial conditions worsened.
- Details: Rent, utilities, and other expenses went unpaid. By October 2025 the facility suspended operations and eventually shut down, displacing around 15 residents. Former director described unpaid wages and a “living hell” for staff.
Kanagawa Prefecture
- Acquisition: 2022
- Closure: September 2025 after funding cuts.
- Details: Operating budgets were reduced months before closure on instructions attributed to the company president.
Acquisition Strategy
Interviews with former employees describe a poorly managed M&A approach:
- Purchase price: 1 million–5 million yen per facility.
- Resale price to Chinese buyers: 40 million–100 million yen, depending on location.
The president, of Chinese origin, allegedly sold the acquired hotels and care facilities at high prices to Chinese owners while retaining operational control through his company. Despite internal warnings about persistent losses, the president continued acquisitions, reportedly focusing solely on location.
Link to Japan’s “Business Manager” Visa
Evidence, including promotional materials from a Beijing investment seminar, suggests the business may have been linked to the “Business Manager” visa system, which allows foreign nationals to reside in Japan by operating a business.
- Former employees said the president promoted investments by emphasizing that ownership of such facilities could facilitate obtaining residency visas.
- Fees paid by Chinese buyers appeared to include costs related to visa processing.
When confronted in late January about unpaid wages and broader operations, the president declined to respond directly, stating that any interview would require legal counsel.