Care homes and hotels in Japan shut as expansion strategy unravels

TOKYO, May 02 (News On Japan) - 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.