The opportunity: an onsen villa already profitable, under-operated
In the hot-spring town of Atami (Shizuoka), a few minutes' walk from the station, this 3LDK onsen villa (69.55 m² on a 302 m² plot) is already run as a short-term rental. The seller's revenue statement is clear: ¥3.5M gross revenue in 2024 (¥3,509,435, 135 bookings), an average ADR of around ¥22,000/night, ~45% occupancy and a 4.29/5 rating across 17 reviews. At ¥9.5M (already reduced) the property pays for itself in under 3 years of gross revenue. This is the archetype of the "already profitable, under-operated" asset: income covers the purchase, and every targeted upgrade turns into extra yield.
Note: the listed price has already been reduced (the property has been on sale for several months), and the 302 m² plot is more than double the floor area, a real asset for a family holiday villa.
The improvement plan (drawn from the 17 guest reviews)
- Analysis of the 17 Airbnb reviews: strengths (private onsen, view, space) and recurring weaknesses (terrace, equipment, lighting)
- Build out the terrace to capitalise on the view: the most mentioned point in the reviews
- Upgrade the equipment: bedding, kitchen, curtains and lighting
- Raise the average price toward ¥22,000–25,000/night and occupancy toward 50–55%
- Targeted upgrade budget of ≈ ¥1.1M, focused on what guests actually see
- Goal: ≈ ¥4.5M gross revenue and ≈ 25% projected net yield
The numbers in detail
| Item | Amount (¥) |
|---|---|
| Listed price | 9 500 000 |
| Purchase costs (≈ 6%) | ≈ 570 000 |
| Targeted upgrades (terrace, view, equipment) | ≈ 1 100 000 |
| Total investment | ≈ 11 200 000 |
| 2024 gross revenue (seller statement) | 3 509 435 |
| Estimated operating costs (self-managed) | ≈ −1 600 000 |
| Current estimated net income (≈ 19%) | ≈ 1 900 000 |
| Projected revenue after upgrades | ≈ 4 500 000 |
| Projected net income (≈ 25%) | ≈ 2 750 000 |
Real deal figures. Past performance is no guarantee of future results.