Franchise Japan interviewed Mr. Keisuke Taguchi, Representative Director of KENTIKU SHOUBAI that is a venture company of space renovation.
Vacant house doctor
We, KENCHIKU SHOUBAI, have a sense of crisis with regard to the declining population in Japan. Do you know how many years later the current Japan’s population of 120 million will be halved? As opposed to such a crisis prediction, new buildings are constantly being built continuously. Currently, one in seven is vacant house, which will be one in three in 2033.
We are comparing the current situation of this “overburden of new construction, rapid increase of vacant houses” to the overeating state of obesity. Our mission is to advice, treat and operate similar to those for people with obesity to building properties. We are good at space renovation and treat tenants, share houses and offices as useful real estate to add values for them. We are called as “vacant house doctor” and are spreading different attractive points from newly built real estate investment.
At our company, we operate franchises for the management of hostels and licensing-based ryokan (Japanese inn) businesses rather than private residence.
Pyramid structure of accommodation consists of hotel, business hotel, motel, capsule hotel. We are aiming for the capsule hotel zone which occupies the largest trapezoid as the target of our business.
On August 1st, we opened a hostel specializing in cosplayer at Akihabara, which is produced by Mr. Akira Konomi who is a leading person of cosplayer world.
At one of our facilities, the Japanese-style room is equipped with TV, zabuton cushion and hanging scroll of the old Showa era, so customers can warp in that era. We have devised so that customers can shoot anywhere in the room, such as toilet and bath, so that anyone can spread them through SNS.
One of our representative concepts is “Book Tea Bed”, which opened as a new type of accommodation facility in Ginza. It is a hostel based on the concept of “book” x “cafe” × “staying”. The selling point is a distinctive interior design that combines a bookshelf and a bed. In addition, we are planning a Ninja Dojo (= training hall) hostel in Ueno. For this hostel, we are holding down the rights to use scrolls, etc. now, and will plan the accommodation fee from 4000 yen to 6000 yen.
Our hostel business started from April 2017 and currently we are operating 13 hostels and will plan to increase the number of hostels to 20 in this year, to 50 next year. While continually thinking about the content that captures customer’s heart, we assume half of the ratio of overseas guests and Japanese users, which is branding as a hands-on hostel “Bnb+”.
In addition, Airbnb’s host work agent service “Host +” (room cleaning, key delivery, room description, manual creation etc.) and representative management of the hostel are also being operated in franchising.
Investment type business
Many players are involved in each layer of our business. For example, real estate owners, investors, financial institutions, operators and so on. Because it costs JPY10 million to 30 million for renovation, our business can be said to be an investment-type. As the territories to be developed, first of all we are making it successful in one area within the range of foot of the Yamanote line of Tokyo, then we are planning to expand nationwide like Osaka, Okinawa, Hokkaido. When considering overseas, I believe there is a possibility in New York, London etc.
In addition to the first arrow of “Bnb+”, the second and third arrows are already in our idea, we just make them realize.