Japanese Care Homes and Hotels Chain Collapses Amid Suspected Visa Scheme

In a striking example of business expansion gone wrong, dozens of care homes and hotels across Japan have been shuttered after their operator's aggressive acquisition strategy collapsed under financial strain. The closures have left residents displaced, employees unpaid, and investigators probing what appears to be a business model potentially exploiting Japan's visa system for foreign investors.

The story centers around Hotel New Daishin in Choshi, Chiba Prefecture, which had been known for offering one of Japan's earliest sunrise views. The hotel, featuring open-air baths overlooking a natural garden and locally sourced seafood, suddenly suspended operations in late 2025. When reporters visited in December, they found a "Closed Today" notice at the entrance. The company president, whose firm had acquired the hotel in 2024, attributed the closure to aging infrastructure and promised renovations with a reopening targeted for spring 2026.

However, when reporters returned in April, the building remained dark with no visible signs of construction, and the closure notice still in place. This discovery prompted a broader investigation that revealed a pattern of acquisitions followed by closures across the country.

The company, led by a president of Chinese origin, had acquired at least 37 hotels and nursing care facilities, mainly across Japan's Kanto region, since 2020. Multiple sources confirmed that at least 24 of these facilities are now either closed or have ceased operations. The acquisition strategy appears to have been systematic, with facilities purchased for remarkably low prices between 1 million yen and 5 million yen and then resold to Chinese buyers for between 40 million yen and as much as 100 million yen depending on location.

"The primary motivation discussed internally was visa acquisition," stated one former employee, adding that fees paid by Chinese buyers appeared to include costs related to visa processing. This suggests the business may have been linked to Japan's "Business Manager" visa system, which allows foreign nationals to reside in Japan if they operate a business.

The human impact of these closures has been severe. At a nursing care facility in Funabashi, Chiba Prefecture, acquired in 2023, operations deteriorated rapidly as financial conditions worsened. The former facility director described how rent, utilities, and other expenses went unpaid, with demand notices piling up. By October 2025, the facility was forced to suspend operations, ultimately shutting down and displacing around 15 residents to other institutions.

"The situation was devastating," the former director recalled. "Staff repeatedly asked whether salaries would be paid, something never experienced before. The inability to pay wages created what felt like a 'living hell.'"

A similar pattern emerged at a facility in Kanagawa Prefecture, acquired in 2022 and forced to close in September 2025 after funding cuts. The former director noted that operating budgets were reduced months before closure on instructions attributed to the company president.

Interviews with former employees painted a picture of a poorly managed M&A approach in which the company president retained operational control while selling properties at high prices to Chinese owners. Despite internal warnings about persistent losses, employees said the president continued acquisitions, reportedly insisting on purchases based on location alone.

Evidence obtained by reporters, including promotional materials from an investment seminar held in Beijing, supports the visa acquisition theory. Former employees stated that the president promoted investments by emphasizing that ownership of such facilities could facilitate obtaining residency visas in Japan.

When confronted in late January about unpaid wages and broader operations beyond the Choshi hotel, the president declined to respond directly, stating only that any interview would require consultation with legal counsel and could not proceed without a lawyer present.

The collapse of this business model raises serious questions about foreign investment in Japan's elder care and hospitality sectors. While foreign investment can bring capital and expertise, this case demonstrates potential risks when investments prioritize visa acquisition over sustainable operations.

Japan has been increasingly attractive to foreign investors, particularly in its elder care sector as the country faces a rapidly aging population. However, this incident highlights the need for stronger oversight of business acquisitions in sensitive sectors, especially when they appear to be primarily motivated by immigration benefits rather than operational viability.

As investigations continue, the displaced residents and former employees await resolution, while Japan's regulatory authorities may need to reconsider safeguards for vulnerable facilities and the foreign investors who acquire them.