Investing in Love Hotels?

If you’ve lived in Japan, then you would know how odd, yet sensible these love hotels are for privacy. It’s a different world when space is limited and walls are paper thin. And, yes there is such a thing as an opportunity to invest in the love of discrete necessities…cause at that point it’s just practical. And that’s where the below holding company comes in with fancy.

The Alternative Investment Market(AIM) in London has a quotation that is basically a holding company for a fund that operates a portfolio of so-called love hotels in Japan.

The holding company describes the fund with a few words of their own that try to conjure up the market of the love hotel to foreigners with…

Love hotels are one of those Japanese idiosyncrasies that make sense when you live there. They act as a refuge for married couples who live with family, philanderers and those – often backpacking foreigners – looking for a cheap room for the night.

As the country has such a high population density for the available useful land, space and privacy for couples is at a premium. Demand for rooms is at a rate a normal hotel operator can only dream of.

About 2m Japanese visit a love hotel each day and most rooms are used twice a day during the week. As results from Japan Leisure this week showed, they appear to be insulated from the downturn.

One Reply to “Investing in Love Hotels?”

  1. Took me awhile to read all the comments, but I really enjoyed the article. It proved to be very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained! I’m sure you had fun writing this article.

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