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New Hotels in Japan

The economy of Japan recovers slowly after the devastating earthquake and tsunami. So do its hotels, and new projects are announced for the areas affected by disaster. Two Tokyo-headquartered organizations, Sparx Group Co. and Kachikaihatsu Co., have announced the building of a new hotel in Miyagi prefecture. The accommodation will have 314 rooms and will provide space for volunteers and people, whose houses have been destroyed.

The cost of the building estimates 1.1 billion of yen (approximately US$14 million). This is not the only project by these companies as Sparx plans to invest as much as 5 billion of yen (US$65 million) into the building of hotels in Miyagi. The company wants to add two more hotels and increase the total number of guestrooms up to 1,500.

In his interview to Bloomberg Shuhei Abe, the CEO of Sparx, tells that this is a good opportunity for both helping the country and running business. The affected areas need to be reconstructed, because many buildings simply lay in ruins. On the other hand, there is a huge disproportion between the demand and supply, so this is a great chance to get good returns and run business successfully.

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