JP Hotel bankruptcy cases and their background

Till June 2020, officially 35 hotels have been filed as bankruptcy/ civil revitalization cases.

Three main reasons that caused bankruptcy are 1 poor revenue management, 2 outdated business model, and 3 delayed generation change (business successions).

1 Some hotels/ ryokans have outsourced sales/ marketing to travel agencies or internet and they failed to accumulate such know-how in their hotels internally. Thus controlling revenues and taking preventive action had never been under hotel operators hands.

2 From1970s to early 2000, hotels were able to create some revenues by huge capital expenditure, accepting group tours, and accumulating debts from their main banks. People’s resort and leisure styles have been changing but they had never been sensitive enough to catch up with the trend.

3 Some hotels/ ryokans have long histories in local communities but family masters have been unsuccessful in handing over their legacies and in educating their children to be aware of their responsibilities.

Feb 1 case

Fujimiso, in Aichi prefecture: main guests were inbound tourists.

March 11 cases

Kimuraya Ryokan, with more than 300 yrs of history in Miyagi prefecture, went bankrupt.

Hosihtaru Kanko, in Mie prefecture went bankrupt.

Tomiya Ryokan, with more than 60 yrs of history in Hyogo prefecture, went bankrupt.

Hotel Kita Fukurou, in Hokkaido prefecture, went bankrupt

Fujiya hotel in Ibaragi prefecture went bankrupt.

Kanseikaku at Harazuru onsen, in Fukuoka prefecture went bankrupt.

Okuhida Yakushi noyu Ryokan in Gifu went bankrupt.

Kansai Star Resort, the operator of Osaka International Cultural Exchange center in Osaka prefecture went bankrupt.

GK Oyado, the operator of Hotel Kisoonsen in Nagano prefecture went bankrupt.

Tamuraya Ryokan in Fukushima prefecture went bankrupt.

April 14 cases

Kyoto Central In hotel in Kyoto prefecture

Drive Centre Hakusan, the operator of Inter City Hotel Hakusan, in Ishikawa prefecture went bankrupt.

Amakusano Shima LP, the operator of Ryoshino Sato in Kumamoto went bankrupt.

Royal Oak Resort, the operator of Royal Oak Hotel Spa Gardens,in Shiga Prefecture went bankrupt.

Takada Castle Hotel in Nigata prefecture ceased its operation and under legal process.

Izumiya Ryokan, the operator of Kunugi daira hotel in Fukushima prefecture went bankrupt.

Hitoyoshi tourism, the operator of Angelic Heian in Kumamoto prefecture went bankrupt

WBF, a hotel operator in Osaka went bankrupt with the total debt of around 160mil USD.

First Cabin group, the budget style hotel operator in Tokyo base went bankrupt.

Venture Capital JR West Japan first cabin closed and under dissolution process.

Inariyama Onsen, in Nagano prefecture ceased its operation and under legal process.

Marui shoji, Air B&B operator in Hokkaido went into capital shortage.

Choshu tourism, who operated Hagi grand Hotel Tenku went bankrupt.

Travel Sirius in Okayama went bankrupt.

May 6 cases

Kokusai Hotel, the operator of Aomori Kokusai hotel, in Aomori prefecture went bankrupt.

Mizuho hotel resort management, a group company of Mizuho Resort group in Tokyo went bankrupt.

River Side Hotel Sannsui in Oita prefecture went bankrupt.

Chikujokan hotel in Fukuoka prefecture went bankrupt.

Hotel ichimanri in Nagano prefecture went bankrupt.

Kazuno Park hotel in Akita prefecture went bankrupt.

June 3 cases

WBF holdings went bankrupt and Hoshino resorts (https://www.hoshinoresorts.com/) became the sponsor.

KOSCOINN in Aichi asked to apply for the Civil Rehabilitation Act.

Hokkai Kanko, the leisure hotel operator in Mie prefecture went bankrupt.