Thursday, May 27, 2010

Japan Leisure Hotels Law to Change

Articles in today's Nikkei and other major Japanese newspapers report on the announcement by the National Police Agency of implementation of changes to the Japanese "fuieho" (Entertainment Law) which will come into effect on 1 January 2011.

The article says this is first change in 26 years for the industry. The Police say that they currently have 3,590 hotels registered as "love hotels" under the fueiho ho; however, there are more than 30,000 other hotels which act in a similar way.

The NPA are trying to bring this industry under their supervision by requiring hotels which are defined as "love hotels" to require licensing from the Police and the Police say that they expect that the number of hotels subject to their jurisdiction will substantially increase.

Under the new laws, hotels will be defined as "love hotels" if they

1.advertise day time pricing or
2.allow customers direct access to rooms or
3. use the "in room payment machines" which have long been a "grey area" in this industry.

This is quite a significant development for this large Japanese industry - which some say is larger than Toyota - because licensing by the Police will reduce valuations of hotels and also liquidity in this market segment.

Due to the negative impacts on valuation and liquidity for hotels under Police licensing, we can expect cashed up hotel owners to renovate their properties so that they do not fall within the above definition of "love hotels"; but owners without the necessary funds will be in a difficult situation and will be squeezed.

Shinsei Bank and listed Japanese property fund, Kenedix both have direct holdings in leisure hotels and they may be required to dispose of these assets by TSX rules if the new laws impact their hotels.

They will be selling into a buyers market.

Previous post on Leisure Hotels - http://japanrealestatecommentary.blogspot.com/2010/01/japanese-retail-investors-look-to.html

http://www.nikkei.com/news/latest/article/g=96958A9C93819695E0E4E2E7968DE0E5E2E7E0E2E3E29180E2E2E2E2

http://www.jiji.com/jc/zc?key=%C9%F7%B1%C4%CB%A1&k=201005/2010052700249

http://mainichi.jp/select/wadai/news/20100527k0000e040019000c.html

http://sankei.jp.msn.com/affairs/crime/100527/crm1005271040012-n1.htm

19 comments:

  1. Most hostels have Internet connection, a laundry room, a telephone, lockers in which to store your belongings in, and a breakfast service.

    Pousadas em Arraial Do Cabo

    ReplyDelete
  2. The term "cooking" includes a wide range of methods, tools and combination of ingredients to create the flavor and digestibility of food. Cooking technique, known as culinary art, generally requires the selection, measurement and combining of ingredients in a controlled procedure in an effort to achieve the desired result. Constraints on success include the variability of ingredients, ambient conditions, tools, and the skill of the individual cooking. Ansys Products 2020 R1

    ReplyDelete
  3. hello i discovered your post and thought it was very informational likewise i suggest this site about repairing lap tops Click Here solidworks 2017 download 64 bit

    ReplyDelete
  4. I observe there is a lot of spam on this blog. Do you want help cleaning them up? I might help in between courses! 먹튀사이트

    ReplyDelete
  5. hello!,I like your writing very much! share we communicate more about your article on AOL? I need a specialist on this area to solve my problem. May be that’s you! Looking forward to see you. 먹튀사이트

    ReplyDelete
  6. It’s laborious to find educated individuals on this subject, but you sound like you know what you’re talking about! Thanks 먹튀사이트

    ReplyDelete
  7. Great post, beautiful weblog with great informational content. This is a really interesting and informative content. 먹튀

    ReplyDelete
  8. there are many good family resorts that you can find both online and offline, some are very cheap too,, 먹튀검증

    ReplyDelete
  9. Great post, beautiful weblog with great informational content. This is a really interesting and informative content. Mega888 game client download

    ReplyDelete
  10. Hi there, Can I download this post photograph and employ it on my personal blogging site? 918kiss kiss918 apk download

    ReplyDelete
  11. Hi there, Can I download this post photograph and employ it on my personal blogging site? 토토사이트

    ReplyDelete
  12. you use a fantastic blog here! do you wish to have the invite posts in my small blog? 파워볼사이트

    ReplyDelete
  13. 매우 유익한 게시물! 여기에는 성공적인 소셜 네트워킹 캠페인을 시작하는 데 도움이되는 많은 정보가 있습니다. 먹튀검증

    ReplyDelete
  14. These is apparently just like definitely great. Most of these modest items are designed through the use of variety of base consciousness. I love these significantly 토토검증

    ReplyDelete
  15. This is worth it to read for everyone. Thank you for sharing good ideas to all your readers and continue inspiring us 토토사이트

    ReplyDelete
  16. You ought to basically fantastic not to mention solid advice, which means notice 토토사이트

    ReplyDelete
  17. Superbly written article, if only all bloggers offered the same content as you, the internet would be a far better place.. 먹튀검증

    ReplyDelete
  18. Great post but I was wondering if you could write a little more on this subject? I’d be very thankful if you could elaborate a little bit further. Thanks in advance! 토토사이트

    ReplyDelete
  19. I’m still learning from you, while I’m improving myself. I certainly enjoy reading everything that is written on your website.Keep the posts coming. I loved it!
    먹튀검증

    ReplyDelete