Luxury boutique hotel planned for Otaru, Hokkaido


A Sapporo-based real estate developer is planning a small luxury hotel within the grounds of a historic villa in Hokkaido’s Otaru City. The boutique hotel is scheduled to open in July 2017. It will be connected to the historic residence next-door which is operated as a restaurant. 

The 4-storey hotel will have 19 guest rooms and a total floor area of 1,800 sqm. Construction costs are estimated at around 400 million Yen (approx. 3.8 million USD). Rooms will feature outdoor rotenburo baths, and guests will be able to enjoy breakfasts and dinners provided in the restaurant. Nightly room rates are expected to be around 30,000 Yen per person.



The main house was built in 1927 for Miyakichi Itaya (1885-1962), a local shipping magnate and former mayor of Otaru City. The once magnificent home was on a large 5,000 sqm hillside location overlooking the port below

Half of the heritage-listed house was demolished in 2011 to make room for two multi-storey rental apartment buildings. The current owner had originally planned to demolish the entire house, but decided to keep a portion out of courtesy to the previous owner.

During demolition, an underground WWII air-raid shelter was discovered near the house. The former gardens have since been paved over and are used as parking for the apartment buildings.


Before and after partial demolition of the house.

The Hokkaido Shimbun, October 31, 2016.
The Otaru Journal, November 29, 2011.

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