Punctual’s container-style hotel in Bihoro, Hokkaido, Japan. Punctual/Yonhap News
Shipping containers once used as temporary lodging at construction sites are being converted into hotels in Hokkaido, Japan. Their appeal lies in lower upfront investment than conventional hotels and reduced labor costs through unstaffed operations. Some properties now post average annual occupancy rates above 60%, drawing attention to the model as a new approach to lodging.
Construction Lodging Turned ‘Sauna Hotel’ — Up to 20,000 Yen a Night
Punctual, a regional trading company headquartered in Japan’s Kochi Prefecture, will begin a trial run of a container hotel on the 10th at Bihoro Midori no Mura in Bihoro, eastern Hokkaido, the Nihon Keizai Shimbun reported on the 7th.
The property has four lodging containers. It operates on an all-inclusive basis, with barbecue and breakfast made from Hokkaido-grown ingredients, alcoholic beverages and soft drinks, and 90 minutes of access to a private sauna all included in the room rate.
Bihoro draws many visitors to the Bihoro Pass, but most come only for day trips, limiting the spillover into local lodging and spending. The town’s plan is to extend visitors’ stays by setting up a container hotel in a natural setting.
The trial run continues through Nov. 15. During that period the rate is about 5,000 yen (about 43,000 won) per person. After the official opening next spring, rates are set at 18,000 to 20,000 yen (about 155,000 to 172,000 won) a night.
One Employee Runs the Hotel — 65% Occupancy
Punctual’s container-style hotel in Bihoro, Hokkaido, Japan. Punctual/Yonhap News
Some operators in Hokkaido are already turning a profit on container hotels. Takahashi Kogyo, an air-conditioning and sanitary equipment company, has run the unstaffed container hotel Hotel Kutekun in Nakashibetsu since 2022.
Demand from business travelers moving in and out of eastern Hokkaido rose after the COVID-19 pandemic, as branch offices and sales offices of companies around Kushiro closed one after another — a tailwind for the business. More recently, foreign visitor numbers have returned to pre-pandemic levels and Japanese tourists are also increasing, according to the company.
The operating model is simple. The hotel uses self check-in and advance payment, and outsources cleaning and maintenance. That has allowed it to cut dedicated staffing for hotel operations to a single employee.
Building one container costs about 20 million yen (about 172 million won). Unlike a conventional building, a container can be moved to another area if lodging demand falls.
The hotel’s average occupancy rate last year was about 65%. Revenue from Takahashi Kogyo’s hotel business rose 25% from a year earlier to 44 million yen (about 378 million won).
Success Leads Operator Into Consulting
Takahashi Kogyo is expanding its business based on the experience it has built in running lodging facilities. After taking on contracts to operate and manage other hotels, it opened a new cabin-style lodging facility in Nakashibetsu in March.
In April, the company entered consulting to support the launch of container and unstaffed hotels. In May, it partnered with a container construction firm in Sapporo to build a system covering design, manufacturing, construction, equipment installation and operations in one package. Inquiries from local governments and companies are also increasing, the company said.
Further expansion is under review. Candidate sites include the Chitose and Tomakomai areas of Hokkaido, where chipmaker Rapidus and large data centers are being built.
Container hotels, which cut upfront costs and staffing while allowing facilities to be relocated as needed, are emerging as a new option for a Japanese lodging industry struggling with labor shortages.
AloJapan.com