On May 29, luxury hotelier Hoshino Resorts announced plans to establish a fund to support domestic hotels and ryokans that are suffering from a drop in customers due to the coronavirus pandemic. The tentatively-named Hotel Ryokan Fund will be set up this summer, with an expected investment of between 10 ~ 20 billion Yen (approx. 93 ~ 185 million USD).
The goal is to support the continued operations of struggling hotels, while ensuring a quick and smooth recovery of the tourism and accommodation industry once the pandemic has subsided.
After acquiring hotels and ryokans, they will be sold off once operations have improved. The estimated turnaround period is between 3 to 5 years, with a goal of acquiring and flipping around 10 hotel operations.
Hoshino Resorts was established in 1914 in Karuizawa and currently manages 42 hotels, onsens, and resorts.
Hoshino Resorts Press Release, May 29, 2020.
Sankei Biz, May 29, 2020.
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