Osaka Metro loses millions on minpaku mansion

Osaka Metro Co., Ltd., the operator of Osaka’s metro transit system, has reportedly sold a ‘minpaku’-style short-term letting building at a loss. The apartment building was purchased in 2019 with the goal of opening it to foreign tourists from February 2021, but those plans have been abandoned due to the ongoing international travel bans.

The 13-story, 72-room building was sold last December for an undisclosed price, although it is estimated to have sold for less than the 2 billion Yen (approx. US$19.3 million) Osaka Metro purchased it for. ABC News suggests the loss may have been several hundred million Yen. 

With people spending more time at home, bus and rail passengers have fallen over the past year.  The company is expecting to post a net loss of 3.8 billion Yen for the year ending March 2021.

Sources:
The Asahi Shimbun, January 22, 2021.
ABC News, January 22, 2021.

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