Asahikawa Central RC 39-Key Value-Add Hospitality Investment Opportunity

Located in the heart of Asahikawa City, this 39-room reinforced concrete (RC) residential building presents a rare opportunity to acquire, reposition, and operate a high-yield hospitality asset in one of Hokkaido's key tourism and business destinations.

The business plan involves a full renovation and conversion of the existing apartment building into a serviced accommodation / hotel-style operation, targeting both domestic and international visitors. Investors can benefit not only from attractive operating cash flow but also from substantial value creation through asset repositioning and future resale.

Property Highlights

• Prime central Asahikawa location
• Approximately 434 tsubo (1,435 sqm) gross floor area
• 39 guest rooms
• Reinforced concrete construction
• Strong tourism and business travel demand
• Significant value-add potential through renovation and operational improvement
• Clear exit strategy with upside from NOI growth and cap rate compression

Property Information

ItemDetailsLocation7-jo Dori 6-chome, Asahikawa, HokkaidoStructureReinforced Concrete (RC)Year Built1980Land AreaApprox. 165 tsubo (545 sqm)Building AreaApprox. 434 tsubo (1,435 sqm)Total Rooms39AccessClose to Asahikawa Station

Projected annual NOI:

• Standard Case: JPY 52.4 million
• High Case: JPY 56.0 million

Projected NOI Yield:

• Standard Case: 17.3%
• High Case: 18.5%

Value-Add Strategy

The investment thesis is based on three key drivers:

1. Operational Upside
   • Conversion from underutilized residential asset to hospitality use
   • Higher revenue per room through short-term accommodation
2. NOI Growth
   • Full building renovation
   • Improved occupancy and ADR
   • Enhanced guest experience
3. Capital Appreciation
   • Increased asset value through NOI expansion
   • Potential exit to hospitality investors seeking stabilized cash-flow assets

Investment Overview

This is a rare opportunity to acquire a centrally located RC asset in Asahikawa with both strong cash-flow potential and meaningful value-add upside. The project offers a combination of income generation, asset appreciation, and a clearly defined exit strategy, making it attractive for investors seeking exposure to Hokkaido's growing tourism and accommodation market.

Addtionaly , foreigners can get a loan as well.