Buying an Operating Guesthouse in Japan: How to Check the Seller's Numbers
Every few weeks someone sends me a listing for a guesthouse in Japan that’s already running, with a line like “turnkey, 12% yield, fully booked.” I understand the appeal. The furnishing is done, the first season with no reviews is behind you, and cash comes in from day one. You may also inherit a compliant physical setup. The right to operate still has to be checked, though. Under minpaku, a change of operator usually needs a new notification. Under 旅館業, you can only succeed to the license if the business transfer gets prior approval. Almost every time, the number in the headline is the most generous possible reading of the property’s history.
This post covers how I check the seller’s numbers before I believe any of them. It’s not about whether to buy. It’s about making sure you’re looking at the business as it really is, not the one in the brochure.