Hotel Pulse
How Japan’s Vacant Akiya Houses Are Becoming Hospitality Businesses
In Japan, “akiya” (空き家) refers to vacant homes that have been abandoned due to a growing phenomenon driven by demographic shifts and economic changes. Decades of low birth rates, rapid urbanization and an ageing population have gutted rural areas, which has left many traditional houses empty. Often, heirs inherit these properties but cannot afford their upkeep or renovation.
Indeed, approximately 59% of akiya are bequeathed properties (Tochibayashi & Kutty, 2024) and tax policies discourage demolition (in Japan, vacant land is taxed more heavily than land with buildings). These factors have contributed to a swelling stock of akiya nationwide.
As of late 2023, Japan had about 9 million akiya (roughly 13.8% of all Japanese homes!), which is double the number from 1993 (Iizuka, 2024; Nippon.com, 2024).
Rural prefectures like Wakayama and Tokushima face vacancy rates exceeding 21%, but even urban areas have hundreds of thousands of homes that have been empty for years.
Akiya as an Investment Opportunity
At first glance, akiya may appear to be bargain real estate gems for investors, yet they pose significant challenges.
Most are located in depopulated rural areas with limited economic activity, resulting in uncertain rental demand and resale prospects. While purchase prices are often low, renovation costs can be substantial, especially for older homes needing structural repairs, modern utilities or compliance with stringent building codes.
Legal complexities, fragmented ownership, low liquidity and ongoing maintenance add layers of risk. Without strong local demand or a clear business plan (e.g., converting a property into a boutique lodging in a tourism hotspot) an akiya can quickly become a liability.
However, for investors with a passion for restoration and a strategic vision, akiya offer cultural and lifestyle value far beyond monetary returns.
Repurposing Akiya Houses for Hospitality
Savvy investors view akiya as affordable properties with high upside potential. Many akiya are kominka (i.e., traditional pre-WWII farmhouses showcasing classic Japanese craftsmanship) that appeal to tourists seeking authentic rural experiences.
Western real estate agents have moved into the market, catering to foreigners looking for their own slice of Japan. Renovated akiya have become guesthouses, boutique inns and co-living retreats. Common models include:
- Short-term rentals (Airbnb-style) in restored kominka or machiya (townhouses) that are often listed on specialized platforms like Old Houses Japan.
- Boutique hotels (called ryokan in Japan) that preserve traditional design while incorporating modern amenities.
- Remote work and co-living hubs that offer high-speed internet and serene environments for digital nomads (Richardson, 2025).
A particularly innovative approach is the albergo diffuso (“scattered hotel”) concept, which transforms entire villages into decentralized inns.
Guests stay in restored akiya spread across a hamlet or town but share centralized reception, dining and concierge services. Not only are buildings overhauled but local communities benefit as well.
Examples like NIPPONIA in Sasayama showcase this blend of heritage preservation and sustainable tourism (murabito.nipponia.or.jp).
What are the Challenges and Considerations?
Despite their appeal, investing in an akiya comes with risks:
- Renovation Costs: Many akiya suffer from structural issues such as rotting beams, termites, mold or outdated infrastructure. Renovations, especially for heritage homes, require specialized skills and can exceed initial budgets.
- Legal and Zoning Restrictions: Properties on agricultural land often need formal land-use conversion before operating as lodging. The 2018 Minpaku law caps short-term rentals at 180 days per year without a hotel license, though some municipalities offer exemptions to support tourism. Navigating these regulations demands diligence.
- Ownership and Bureaucracy: Ownership may be unclear due to fragmented heirship, which further complicates sales. Foreign investors face additional hurdles, including legal and language barriers. Local partnerships are therefore advisable.
- Market Demand and Seasonality: Rural hospitality ventures are often seasonal, dependent on festivals, nature or cultural attractions. Proximity to hot springs or appealing to digital nomads are year-round solutions to make an akiya investment more sustainable.
- Financing and ROI: Banks may hesitate to fund remote properties with uncertain resale value. ROI varies widely: urban luxury rentals yield higher margins, while rural projects target budget travelers and require longer timeframes to break even.
Given these hurdles, investors should conduct thorough feasibility studies, engage with local stakeholders and maintain financial flexibility.
With patience and cultural sensitivity, akiya investments can contribute to community revitalization while offering distinctive hospitality experiences.
Government Initiatives and Incentives for Akiya Investments
To address rural decline, Japan’s national and local governments promote akiya rejuvenation through various incentives. Most municipalities compile lists of vacant homes for sale or rent (known as “akiya banks”). Some towns offer houses for a pittance (approx. $500) to attract new residents (Teh, 2021).
Renovation subsidies, grants and tax incentives further support restoration efforts (Nippon Tradings International, 2024).
Policies like the 2015 Vacant House Special Measures Law empower mayors to force owners to repair or demolish dilapidated and dangerous properties or even revoke tax breaks.
Startup visas in cities like Imabari grant residency to entrepreneurs investing in local businesses (Goh, 2024). This mix of free listings, subsidies, legal support, and tax relief encourages investors and newcomers to breathe new life into akiya.
The Ministry of Land, Infrastructure, Transport and Tourism of Japan offers an online platform that provides comprehensive information about Akiya (available in Japanese only).
Looking to Invest in Japanese Fixer Upper?
For hospitality investors considering akiya, here is some strategic advice:
- Find properties via akiya banks: Search municipal registries and real estate listings; verify ownership and any residency requirements.
- Assess renovation needs: Hire professionals for detailed inspections and budget generously for repairs, termite treatment, seismic retrofitting, and modern amenities. Don’t forget Japan’s 10% consumption tax on services.
- Understand regulations: Review zoning, building codes and registration requirements for renting your property (minpaku). Confirm visa and work rules if managing operations as a foreigner.
- Leverage local support: Early contact with tourism or planning offices can facilitate grants, loans and guidance.
- Prioritize authenticity and experience: Preserve traditional features (tatami mats, shoji screens, onsen baths) and offer cultural activities (local cuisine, tours, farm work) to stand out from conventional hotels.
In summary, successful akiya-to-hospitality ventures require meticulous preparation, creative vision and alignment with local tourism trends.
Revamping an ageing building is a challenge even before adding language, cultural and regulatory barriers.
For intrepid investors, however, leveraging government programs and respecting community contexts can unlock Japan’s hidden treasures and contribute to rural revitalization.
References
Goh, A. (2024, November 26). They bought an abandoned house in rural Japan for $6,500. Now, they’re renting it out on Airbnb for $130 a night. Business Insider. https://www.businessinsider.com/millennial-couple-moved-to-japan-abandoned-home-akiya-renovation-guesthouse-2024-11
Iizuka, N. (2024, November/December). What is the current state of Japan’s vacant house issue? Japan SPOTLIGHT. Japan Economic Foundation. https://www.jef.or.jp/journal/pdf/258th_Economic_Indicators.pdf
Nippon.com. (2024, April 30). Japan’s vacant homes reach record high in 2023. https://www.nippon.com/en/japan-data/h01987/
Nippon Tradings International. (2024, June 8). Akiya: A Japanese phenomenon. https://nippontradings.com/akiya-a-japanese-phenomenon/
Nipponia. Retrieved May 19, 2025, from https://murabito.nipponia.or.jp/
Richardson, J. (2025, February 5). Japan invests in attracting digital nomads with new subsidies. Essential Japan. https://essential-japan.com/news/japan-launches-digital-nomad-initiative/
Teh, C. (2021, May 31). Japanese government is selling houses for $500 to populate rural areas. Business Insider. https://www.businessinsider.com/japanese-government-selling-rural-homes-cheap-akiya-banks-2021-5
Tochibayashi, N., & Kutty, N. (2024, March 18). Turning Japan’s surging empty homes into community assets. World Economic Forum. https://www.weforum.org/stories/2024/03/turning-japan-s-surging-empty-homes-into-community-assets/
Hotel Pulse
Sports Hospitality Market to Reach USD 74,318.43 Million by 2036, Growing at a CAGR of 14.12%: Credence Research
PUNE, India, July 16, 2025 /PRNewswire/ — According to a new market research report published by Credence Research, the global Sports Hospitality Market was valued at USD 8,345.70 million in 2018, rose to USD 15,233.39 million in 2024, and is expected to reach USD 74,318.43 million by 2036, growing at a CAGR of 14.12% during the forecast period.
The market is witnessing strong momentum owing to the increasing global appeal of high-profile sporting events and the growing appetite for premium, immersive experiences among both corporate clients and affluent consumers. Demand for VIP suites, exclusive access packages, gourmet catering, and behind-the-scenes privileges continues to surge at major tournaments such as the FIFA World Cup, UEFA Champions League, Super Bowl, Wimbledon, and Formula One Grand Prix. The sports industry’s ongoing shift toward experiential offerings and revenue diversification is further propelling investments in hospitality infrastructure and services.
Technological innovation and international expansion are reshaping the market dynamics. Enhanced digital ticketing, real-time fan engagement, and smart stadium integrations are elevating the guest experience. Additionally, emerging markets in Asia-Pacific, the Middle East, and Latin America are playing an increasingly vital role, driven by infrastructure upgrades and growing sports tourism. Strategic collaborations between sports federations, hospitality brands, and travel operators are expected to unlock new revenue streams and sustain market growth across geographies.
Browse the report and understand how it can benefit your business strategy – https://www.credenceresearch.com/report/sports-hospitality-market
Key Growth Determinants – Sports Hospitality Market
Rising Demand for Premium Sports Experiences
The growing preference for exclusive, high-end experiences among affluent consumers and corporate clients is a major driver of the sports hospitality market. Demand for VIP boxes, luxury suites, fine dining, meet-and-greet opportunities, and personalized concierge services continues to surge at major sporting events worldwide. Corporations are increasingly leveraging hospitality packages to build client relationships and enhance brand visibility, while fans seek more immersive and memorable ways to engage with their favorite teams and athletes.
Expansion of Global Sports Events and Commercialization
The increasing frequency and scale of international sporting events—such as the Olympics, FIFA World Cup, ICC tournaments, and Formula One races—are fueling market growth. Sports organizations are heavily investing in hospitality infrastructure to diversify revenue streams and enhance audience engagement. Coupled with the globalization of sports leagues and the rise of sports tourism, these developments are significantly expanding the market footprint across developed and emerging economies.
Hotel guests are increasingly feeling like they’re getting more bang for their buck, according to the 2025 North America Hotel Guest Satisfaction Index (NAGSI) Study from J.D. Power.
Redesigned for 2025, the study measures overall hotel guest satisfaction based on performance in seven core dimensions—including value, guest room, staff services, facilities, communications and connectivity and food and beverage—across nine segments ranging from luxury to economy.
Despite the average daily rate for a U.S. hotel room reaching a record high of $158.67 in 2024, clean and well-designed rooms, omnipresent amenities such as smart TVs and user-friendly mobile apps are helping boost traveler satisfaction.
Hotel guest perceptions of value received for nightly rate paid increases in every hotel segment in this year’s study, with the most significant year-over-year gains coming in the upscale, midscale and economy segments.
Dogs enjoying a Home2 Suites by Hilton guest room. (photo courtesy of Hilton)
“We’re at an important inflection point in the travel marketplace where several years of record-high hotel demand and the pace of room rate increases is starting to slow,” Andrea Stokes, hospitality practice lead at J.D. Power, said in a statement.
“Hotel owner and operator investments in guest room décor and furnishings, in addition to bathroom updates, are paying off in higher satisfaction. One area in which hotels can significantly influence guest satisfaction without massive capital expense is with technology like smart TVs and updated room temperature controls,” she added.
“Travel is becoming more complex with the potential for flight delays or increased road traffic, so guests want hotels to provide the comforts of home.”
Key Takeaways for 2025
In the era of streaming, it’s no surprise that hotel guests want to be greeted by a smart TV, with 40 percent of surveyed travelers selecting “smart TV/ability to stream my entertainment” as a need to have versus nice to have, up from 21 percent in 2019.
What’s more, 72 percent of respondents indicated their room included a smart TV. That figure is up from 39 percent in 2019. Additionally, six out of 10 said they used the smart TV during their stay.
A premier king room inside the Omni PGA Frisco Resort. (Photo Credit: Omni Hotels & Resorts)
J.D. Power also found that guest satisfaction significantly improved year over year in areas such as furnishings and décor (+.05 points), condition of bathroom fixtures (+.05). and comfort of bed (+.04).
The study also shows that hotel app users report higher satisfaction, earning an average score of 699 (on a 1,000-point scale), which is 68 points higher than those who do not use their hotel brand’s mobile app.
It’s no secret that problems ranging from odors and loud noise to check-in issues can lower satisfaction. Nonetheless, this year’s study shows that they are relatively rare, occurring just 12 percent of the time across all hotel stays evaluated. In those incidents, however, guest satisfaction fell dramatically, plummeting 217 points to 460 from 677.
Highest-Ranking Hotel Brands for Guest Satisfaction
The Ritz-Carlton ranks highest in the luxury segment for 2025 with a score of 779, surpassing The Luxury Collection, which ranked first in 2024.
Meanwhile, Omni Hotels & Resorts conquered the upper upscale segment with a top satisfaction score of 731. Drury Hotels (738) ranked highest in the upscale segment, while Hyatt House (705) finished first in the upper extended stay category for a fourth consecutive year.
The exterior of a Tru by Hilton hotel. (Photo Credit: Hilton Hotels & Resorts)
Other repeat segment winners for 2025 include Home2 Suites by Hilton (upper midscale/midscale extended stay), Tru by Hilton (midscale), Microtel by Wyndham (economy) and WoodSpring Suites (economy extended stay). All four brands won their respective categories for a third consecutive year.
Finally, Hampton by Hilton (694) ranked first among upper midscale brands.
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Topics From This Article to Explore
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Cuba Promotions
In addition to reduced rates, here are the offers available at the Cuban properties:
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Group Booking Bonus
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Related: Sunwing Announces Winter Destinations and Perks
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