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NOT A HOTEL 1/36 Share: ¥31.2M for 10 Nights/Yr = ¥156K a Night

Posted: 2026.10.23

Investment & Development

NOT A HOTEL Inc. changed its corporate name to NOTA Inc. effective October 2, 2026, and at a press event on October 5 announced that it would expand into mobility (NOT A GARAGE), housing (NOT A HOUSE) and urban development (NOT A CITY). Its core vacation-home business counts each villa as 360 nights a year and sells it as freehold land-and-building ownership in shares starting at 10 nights a year (a 1/36 share); on days the owners do not use, the villa is rented out as a hotel. According to the company, the business now spans 10 locations, 1,357 owners and cumulative contract value of roughly ¥94 billion. This article converts the share prices confirmed on the official website and in press releases into an “acquisition cost per night” and sets them against the estimated settled ADR of the towns where the properties are located. It also reads how the money flows from the company’s settlement-rules document, and contrasts the model with membership-type resorts on four axes: ownership, resale, inheritance and depreciation.

Metric Definitions Used in This Article

  • ADR (Average Daily Rate): An estimated settled rate (tax-excluded equivalent), calculated by applying a property-type correction factor to the lowest-plan price each property publishes on OTAs and similar channels (per room, two guests, tax-included). Checked against property-level results disclosed by listed hotel REITs (91 properties, most recent 3 months), the median error is about 7%. It is an estimate and differs from each property’s actual settled prices and accounting figures. Area-level ADR is the median of the properties covered (the level of a typical property in the area). In this article, we take a simple average of the monthly values for the municipality where each location sits over the 12 months from October 2025 to September 2026 (all months are finalized actuals). Towns with fewer than 10 properties covered are marked as reference values.
  • Listed price: The average of listed prices across all plans on OTAs and similar channels (room-only to meals included; two guests, per night, tax-included). In this article it is used as the level at which a location itself sells as a hotel.
  • Acquisition cost per night: Share price ÷ (nights owned per year × assumed holding years). Shown for two cases, 10-year and 20-year holding, with exit value (proceeds on resale) set to zero; these are our own estimates. Management fees are added only for locations where they have been published. The per-night charge for owner use (self-use fee) and fixed-asset tax are not included.
  • Two-guest-room equivalent: The villas and suites are let as a whole unit with capacity of 3–10 guests, so when comparing them with the town ADR (one room, two guests), we also show the amount divided by (capacity ÷ 2) treated as the number of rooms. This is a convenience conversion to bridge the capacity gap and does not match actual room configurations.
  • Data sources: MetroEngines Research & Consulting; the official website, press releases and settlement-rules document of NOTA Inc. (formerly NOT A HOTEL Inc.); and various press reports (see the source list at the end)
Cumulative contract value
~¥94bn
Company announcement, Oct 2026 (10 locations)
Number of owners
1,357
~¥69M per owner
Minimum share
10 nights/yr = 1/36
One villa sold as 360 nights/yr
Price range for 10 nights/yr (on sale)
¥31.2M–¥99.96M
Kitakaruizawa & Oku-Yugawara, official website
Resale price gain
Avg +33%
30 deals, ¥1.06bn (end-Nov 2025)
Key Takeaways
  • — On the official website, 10-nights-a-year shares currently on sale at Kitakaruizawa and Oku-Yugawara are priced at ¥31.2M–¥99.96M (Miura’s CLUB SUITE from ¥29.04M). With exit value set to zero, that is ¥312,000–¥1,000,000 per night over 10 years of use, or ¥156,000–¥500,000 per night over 20 years.
  • — Compared with the estimated settled ADR of the host town, the cost is 16–67x on a 10-year, whole-villa basis. Converted to a two-guest room it is 4–17x, shrinking to 2–8x over 20 years. Note the premise: an eight-guest villa is being set against a single hotel room.
  • — The Kitakaruizawa location’s listed price when sold as a hotel is ¥253,300 per night (June 2026, all-plan average). BASE L’s acquisition cost per night is 1.23x that over 10 years and 0.62x over 20 years: the longer the holding period, the further the “cost of the right to stay” falls below the hotel rate.
  • — At Minakami “TOJI,” a whole villa at ¥953.7M was 8.4% cheaper than 36 ten-night shares (¥1,040.76M), and 30 nights was also 8.4% cheaper than three 10-night shares. The bulk discount is designed to be constant.
  • — Funding comes in three layers: pre-completion share sales, syndicated loans arranged by regional banks, and capital alliances with operating companies. Cumulative contract value rose from ¥28.4bn (Nov 2024) to ¥65bn (Jan 2026) to ¥94bn (Oct 2026), and contract value per owner rose from ¥35M to ¥69M.
  • — Locations launched from 2025 onward mainly use loan-for-use contracts: instead of receiving rent, owners deposit a monthly management fee, which is drawn down at the per-night rate only for the nights they use. The cash flow differs by generation of location.

What Had Accumulated by the Name Change — ¥94bn in Contracts and 1,357 Owners

First, the announced figures in chronological order. When the company unveiled its DAO concept in November 2023, it had 7 locations sold or opened, 337 owners and cumulative sales of ¥11.9bn. When it announced ¥10.5bn in debt financing in December 2024 (as of end-November 2024), it had 9 locations, 659 owners and cumulative contract value of ¥28.4bn. At the Series C announcement in February 2026 (as of end-January 2026), it still had 9 locations but over 1,100 owners and cumulative contract value of about ¥65bn. And at the October 5, 2026 press event, it reported 10 locations, 1,357 owners and cumulative contract value of about ¥94bn.

What stands out in this progression is that contract value per owner keeps rising: from about ¥35M (¥11.9bn ÷ 337) to about ¥43M (¥28.4bn ÷ 659), about ¥59M (¥65bn ÷ 1,100) and about ¥69M (¥94bn ÷ 1,357). Contract value is growing faster than the owner count. In the roughly nine months from end-January to October 2026, contract value rose by ¥29bn while owners increased by 257, which works out to more than ¥110M per new owner for that period alone. This suggests that, on top of owners entering at the 10-nights-a-year minimum, buyers of 30-night shares and whole villas are pulling the average up.

Cumulative contract value and number of owners (company announcements)
Compiled by MetroEngines Research & Consulting from company announcements and press reports at each point (Nov 2023: DAO concept announcement; end-Nov 2024 and end-Jan 2026: funding announcements; Oct 2026: name-change press event). The January 2026 owner count is shown as 1,100 based on the published “over 1,100.”

The name change itself took effect on October 2, 2026, and the press event was held on October 5. Under NOTA sit NOT A HOTEL (vacation homes), NOT A HOUSE (housing; CEO Mai Shin), NOT A GARAGE (mobility; CEO Daisou Eto) and NOT A CITY (urban development, established 2025; CEO Midori Omori). Picking out just the numbers from the new businesses announced that day: NOT A HOUSE’s housing product “POD” starts at ¥69.8M per unit, and POD owners get an option to stay 3 nights a year at NOT A HOTEL locations nationwide for ¥16,500 a month. NOT A GARAGE CLUB is a membership with a ¥15.9M initial fee, ¥198,000 per month and a 5-year term, giving access to helicopters, cruisers and cars subject to availability; its first 20 slots were reported as fully subscribed. “NIGO JET,” a Gulfstream G500 designed by NIGO, is scheduled to enter service in December 2027 and is sold as a share with an 8-year ownership period. The design honed in vacation homes — turning the right to stay into ownership — is being extended to housing and mobility.

One Villa = 360 Nights Divided by 36 — The Share Unit and an 8.4% Bulk Discount

The share design is spelled out on the “How to Buy” page of the official website. A whole-villa purchase comes with “available days: 360 per year” and bookings up to 12 months ahead; a shared purchase starts at “10 days per year,” with bookings up to 10 months ahead for 10+ nights and up to 12 months ahead for 30+ nights. Since one villa counts as 360 nights a year, 10 nights a year is 1/36 and 30 nights a year is 1/12. Owners can use their nights at any location nationwide, and the site also notes that, because it is ownership, the share can be sold and inherited.

The published figures for Minakami “TOJI” illustrate the price ladder well. A May 2025 press report (quoting the company) put 10 nights a year at ¥28.91M (assuming 50 years), 30 nights a year at ¥79.48M and a whole villa (360 nights/yr) at ¥953.7M. Thirty-six 10-night shares would total ¥1,040.76M, so the whole-villa price is 8.4% cheaper. Thirty nights is also 8.4% cheaper than three 10-night shares (¥86.73M), so the bulk discount lines up neatly. For a whole-villa buyer, the price appears to reflect the savings on the selling cost of gathering 36 owners and the effort of fractional management.

Minakami “TOJI”: price and discount by share unit (as of May 2025)
Unit (Minakami “TOJI”, May 2025)PriceSum of 10-night unitsDiscountAcquisition cost per night (10 yrs / 20 yrs)
10 nights/yr (1/36)¥28.91M——¥289,000 / ¥145,000
30 nights/yr (1/12)¥79.48M¥86.73M−8.4%¥265,000 / ¥132,000
Whole villa (360 nights/yr)¥953.7M¥1,040.76M−8.4%¥265,000 / ¥132,000
Prices are the company’s explanation as quoted in a May 2025 press report (now sold out). Acquisition cost per night = price ÷ (nights per year × holding years), exit value zero. Source: Compiled by MetroEngines Research & Consulting

Next, how the money flows after purchase. “About Settlement Rules and Income Reports,” a document the company publishes for owners, divides contracts into three types: lease, loan-for-use, and associate owner. Under a lease contract, NOT A HOTEL pays rent according to the owner’s nights (half of the annual rent every six months); the owner pays a self-use fee only for the nights they actually use, at the “per-night rate (rental fee)” stated in the contract, and this is offset against rent every six months. Under a loan-for-use contract there is no rent; the owner deposits a “monthly management fee (deposit)” each month, stays are charged against it, and any balance is refunded at fiscal year-end. Associate-owner contracts deposit a membership fee, with refundability depending on the contract.

The document’s list by contract type shows AOSHIMA, NASU, FUKUOKA, ISHIGAKI, MINAKAMI and Kitakaruizawa’s early houses (BASE and IRORI) on lease contracts, while SETOUCHI, TOKYO, RUSUTSU, MIURA, YUGAWARA and Kitakaruizawa’s MASU, IRORI 2.0, NATURE WITHIN and BASE L6–8 are on loan-for-use contracts. In other words, locations launched from 2025 onward are largely loan-for-use: owners receive no rental income, and in exchange the fixed management-fee burden has been replaced by “charging for what you use.” The document’s loan-for-use example is Kitakaruizawa “MASU”: the per-night rate is ¥105,600 in high season and ¥52,800 in standard season; an owner of 30 nights deposits ¥2,217,600 a year (¥184,800 a month), and in a year in which they use 6 high-season and 10 standard nights, ¥1,056,000 is refunded. Separately, land rent (depending on the house) is charged monthly, fire and earthquake insurance premiums are settled every half-year, and fixed-asset tax is debited once a year (at the October settlement, in proportion to the share); real-estate acquisition tax is advised house by house.

Settlement rules by contract type (lease / loan-for-use)
ItemLease contractLoan-for-use contract
Main locations / housesAOSHIMA, NASU, FUKUOKA, ISHIGAKI, MINAKAMI, Kitakaruizawa BASE (L1–5, M, S) and IRORISETOUCHI, TOKYO, RUSUTSU, MIURA, YUGAWARA, Kitakaruizawa MASU, IRORI 2.0, NATURE WITHIN and BASE L6–8
Owner incomeRent according to nights owned (half of annual amount every six months)None
Cost when using the propertyPer-night rate (rental fee) × nights used, offset against rentCharged against the monthly management fee (deposit); balance refunded at fiscal year-end
Monthly costsAssociation management fee, software license fee, land rent (depending on the house). Fire and earthquake insurance settled every half-yearMonthly management fee (deposit), land rent (depending on the house). Fire and earthquake insurance settled every half-year
Annual costsFixed-asset tax (allocated by share at the October settlement). Real-estate acquisition tax advised house by house
Settlement timingApril–September settled in late October; October–March settled in late April
Source: Compiled by MetroEngines Research & Consulting from NOT A HOTEL, “About Settlement Rules and Income Reports” (document published for owners). Location assignments are our reading of the document’s list of houses by contract type.

The 10 Locations and Their Published Prices — Alongside Each Town’s Estimated Settled ADR

Each location’s page on the official website gives its address down to the lot number. The Nasu location is in Sabara, Otawara City, Tochigi; Kitakaruizawa is in Omae, Tsumagoi Village, Agatsuma District, Gunma; Aoshima is in Aoshima 2-chome, Miyazaki City; Fukuoka is in Omiya, Chuo Ward, Fukuoka City; Setouchi is on Sagishima island in Mihara City, Hiroshima; and Yugawara is in Miyakami, Yugawara Town, Ashigarashimo District, Kanagawa (Oku-Yugawara). In this article, we use the estimated settled ADR of each host municipality (12-month average, October 2025–September 2026) as the benchmark. For Nasu, Otawara City’s ADR is only a reference value based on 8–9 properties, so we also show neighboring Nasu Town (49–54 properties).

Published prices were checked on the official website as of October 15, 2026. Products with prices shown as on sale are Kitakaruizawa’s BASE L (from ¥31.2M), IRORI 2.0 (from ¥70.92M; opening scheduled for November 2027) and NATURE WITHIN (from ¥91.77M; waitlist), Oku-Yugawara’s four ONSEN SUITE rooms (FRAME from ¥34.52M, RIVER from ¥38.48M, POOL from ¥46.61M, PENTHOUSE from ¥99.96M), and YUAMI, also at Yugawara (from ¥265.3M). YUAMI was announced as “a villa you can own outright” and has no share-unit pricing, so it is excluded from the per-night conversion. Miura’s CLUB SUITE (capacity 4) is shown on the official website at ¥29.04M (tax-included) for 10 nights a year — ¥290,000 per night over 10 years and ¥145,000 over 20 years, or 18.0x Miura City’s estimated settled ADR of ¥16,159 (reference value, 4–5 properties) (9.0x as a two-guest room), and 9.0x over 20 years (4.5x). Aoshima, Nasu, Fukuoka, Ishigaki, Minakami and Setouchi are sold out, and the official website notes that “NOT A HOTEL 2nd handles the buying and selling of opened properties.”

Locations, published prices and town estimated settled ADR (official website viewed October 15, 2026)
LocationAddressStatus / compositionCapacityPublished price (10 nights/yr+)ContractTown estimated settled ADR (12-month avg)
AOSHIMAAoshima, Miyazaki City, MiyazakiOpened Nov 2022, 6 villas, sold out—(Sold out; handled by 2nd)Lease¥8,161 (N=55–59)
NASUSabara, Otawara City, TochigiOpened Dec 2022, 3 villas, sold out4–10(Sold out; handled by 2nd)Lease¥5,763 (N=8–9, reference)
Neighboring Nasu Town ¥19,737 (N=49–54)
FUKUOKAOmiya, Chuo Ward, Fukuoka City, FukuokaOpened, 8 units, sold out8(Sold out; handled by 2nd)Lease¥16,059 (N=79–84)
KITAKARUIZAWAOmae, Tsumagoi Village, Agatsuma District, GunmaOpened 2024: BASE / IRORI / MASU / NATURE WITHIN; IRORI 2.0 (4 villas) scheduled to open Nov 20272–8BASE L from ¥31.2M
IRORI 2.0 from ¥70.92M
NATURE WITHIN from ¥91.77M
Lease / loan-for-use¥13,789 (N=19–24)
MINAKAMI “TOJI”Minakami Town, Tone District, GunmaOpened, 5 villas, sold out810 nights ¥28.91M (as of May 2025)Lease¥18,236 (N=46–51)
ISHIGAKI “EARTH”Ishigaki City, OkinawaOpened, sold out—(Sold out; handled by 2nd)Lease¥11,328 (N=58–60)
SETOUCHIMihara City, Hiroshima (Sagishima)Opened 2026, 3 villas, sold out8–101 unit (30 nights/yr) ¥389,037,000 (as of May 2025)Loan-for-use¥5,715 (N=16–18)
YUGAWARAMiyakami, Yugawara Town, Ashigarashimo District, KanagawaAnnounced Feb 2026: 4 ONSEN SUITE rooms + YUAMI (1 villa), on sale3–10FRAME from ¥34.52M / RIVER from ¥38.48M / POOL from ¥46.61M / PENTHOUSE from ¥99.96M
YUAMI from ¥265.3M (no share-unit pricing)
Loan-for-use¥20,509 (N=50–59)
MIURAMiura City, KanagawaCLUB VILLA sold out; CLUB SUITE on sale4 (CLUB SUITE)CLUB SUITE from ¥29.04M (tax-incl.)Loan-for-use¥16,159 (N=4–5, reference)
TOKYO (THE NIGO HOUSE) / RUSUTSUFuttsu City, Chiba / HokkaidoEXCLUSIVE allocation—(Not disclosed)Loan-for-use—
Address, composition, capacity and prices from the official website (viewed October 15, 2026), a May 2025 press report and company press releases. Estimated settled ADR is the simple average of the host municipality’s monthly values from October 2025 to September 2026; N = range of properties covered per month. Source: MetroEngines Research & Consulting
Location map (circle size = estimated settled ADR of the host municipality)
AOSHIMA, NASU, FUKUOKA and KITAKARUIZAWA are plotted at property coordinates; MINAKAMI, ISHIGAKI, SETOUCHI, YUGAWARA and MIURA at the approximate position of the host municipality (including Sagishima and Oku-Yugawara). Source: MetroEngines Research & Consulting

The pipeline ahead: at the Oku-Yugawara announcement in February 2026, the company said it had “opened 9 locations since 2020, and including ongoing projects such as Yugawara, there will be 17.” Locations named on the official website and at the press event include TOKYO (directed by NIGO) on Tokyo Bay in Futtsu City, Chiba; Rusutsu; Yakushima (Ateliers Jean Nouvel); the Kinki coast (Tadao Ando); Okinawa (Herzog & de Meuron); “HERITAGE” at To-ji in Kyoto; and “vertex” in Okinawa. At Kitakaruizawa, according to the official website, a KIDS PARK is scheduled to open in early 2028.

Acquisition Cost per Night — ¥31.2M for 10 Nights/Yr Is ¥312,000 over 10 Years, ¥156,000 over 20

This is the core of the analysis. Dividing the share price by “nights owned per year × assumed holding years” gives the cost of the right to stay per night. Because exit value is set to zero, the actual burden is lighter to the extent the share can be resold. Calculating for the seven products on sale (three at Kitakaruizawa, four at Oku-Yugawara) plus Minakami “TOJI” — eight products in total — gives ¥289,000–¥1,000,000 per night over 10 years and ¥145,000–¥500,000 per night over 20 years. The most accessible are TOJI and BASE L, which fall to around ¥150,000 per night with 20 years of use. PENTHOUSE and NATURE WITHIN, on the other hand, remain at ¥460,000–¥500,000 per night even over 20 years.

10-nights-a-year shares converted to acquisition cost per night (¥10,000/night, exit value zero)
Prices from the official website viewed October 15, 2026 (TOJI from a May 2025 press report). Acquisition cost ÷ (10 nights × holding years). Excludes management fees, self-use fees and fixed-asset tax. Source: Compiled by MetroEngines Research & Consulting

Set against the towns’ estimated settled ADR, these acquisition costs are an order of magnitude higher. Kitakaruizawa BASE L’s ¥312,000 (10-year holding) is 22.6x Tsumagoi Village’s ADR of ¥13,800; TOJI’s ¥289,000 is 15.9x Minakami Town’s ¥18,200; and Oku-Yugawara FRAME’s ¥345,000 is 16.8x Yugawara Town’s ¥20,500. But the comparison is not like for like: the town ADR is a two-guest room rate, while the villas are let whole with a capacity of eight. Treating capacity ÷ 2 as the room count, BASE L becomes ¥78,000 per room-equivalent (5.7x), TOJI ¥72,000 (4.0x) and FRAME (capacity 3) ¥230,000 (11.2x). Over 20 years these shrink to 2.8x, 2.0x and 5.6x respectively. Note, as a caveat on capacity differences, that suites with smaller capacity (FRAME, POOL) show higher converted multiples, while eight-guest villas show lower ones.

Acquisition cost per night for 10-nights-a-year shares and multiple of town estimated settled ADR (exit value zero)
Product (10 nights/yr)TownShare price10 yrs: ¥/nightvs town ADR (whole villa / two-guest room)20 yrs: ¥/nightvs town ADR (whole villa / two-guest room)
MINAKAMI TOJI (8 guests)Minakami Town ¥18,236¥28.91M289,10015.9x / 4.0x144,5507.9x / 2.0x
KITAKARUIZAWA BASE L (8 guests)Tsumagoi Village ¥13,789From ¥31.2M312,00022.6x / 5.7x156,00011.3x / 2.8x
YUGAWARA FRAME (3 guests)Yugawara Town ¥20,509From ¥34.52M345,20016.8x / 11.2x172,6008.4x / 5.6x
YUGAWARA RIVER (6 guests)Yugawara Town ¥20,509From ¥38.48M384,80018.8x / 6.3x192,4009.4x / 3.1x
YUGAWARA POOL (4 guests)Yugawara Town ¥20,509From ¥46.61M466,10022.7x / 11.4x233,05011.4x / 5.7x
KITAKARUIZAWA IRORI 2.0 (8 guests)Tsumagoi Village ¥13,789From ¥70.92M709,20051.4x / 12.9x354,60025.7x / 6.4x
KITAKARUIZAWA NATURE WITHIN (8 guests)Tsumagoi Village ¥13,789From ¥91.77M917,70066.6x / 16.6x458,85033.3x / 8.3x
YUGAWARA PENTHOUSE (8 guests)Yugawara Town ¥20,509From ¥99.96M999,60048.7x / 12.2x499,80024.4x / 6.1x
SETOUCHI 1 unit = 30 nights/yr (10 guests)
+ management fee ¥554,400/month
Mihara City ¥5,715¥389,037,0001,296,790
+221,760
226.9x / 45.4x (excl. management fee)648,395
+221,760
113.5x / 22.7x (excl. management fee)
Two-guest-room equivalent = amount divided by (capacity ÷ 2) treated as the number of rooms. SETOUCHI’s management fee is the May 2025 reported figure (¥554,400/month), annualized and divided by 30 nights, assuming all nights are used. Source: Compiled by MetroEngines Research & Consulting
20-year acquisition cost per night as a multiple of town estimated settled ADR (whole villa / two-guest-room equivalent)
Town estimated settled ADR is the host municipality’s average for October 2025–September 2026. SETOUCHI (30 nights, 1 unit) excluded for axis scale. Source: Compiled by MetroEngines Research & Consulting

A more appropriate benchmark than the town ADR is probably the price at which the location itself sells as a hotel. According to MetroEngines Research data, the listed price of the Kitakaruizawa location (all-plan average, tax-included, two guests, whole villa per night) was ¥253,300 in June 2026 (24 days observed), and the Fukuoka location was ¥176,300 (30 days observed). BASE L’s acquisition cost per night is 1.23x this listed price over 10 years and 0.62x over 20 years; IRORI 2.0 is 2.8x and 1.4x, and NATURE WITHIN 3.6x and 1.8x. In other words, for a BASE L-class share held for 20 years, the “cost of the right to stay” falls below the location’s own hotel rate, with exit value as ownership on top. However, under a loan-for-use contract each owner stay incurs the per-night rate (in the MASU example, ¥105,600 high season / ¥52,800 standard), so the total burden of an actual night’s stay is the acquisition cost plus the self-use fee — a point not to be overlooked.

The resale record published by the company is also a reference for exit value. The marketplace run by NOT A HOTEL 2nd shows 30 completed deals totaling ¥1.06bn as of end-November 2025, with sale prices up an average of +33% and a maximum of 2.1x versus purchase price. Resale is possible from the fourth year after purchase (a three-year holding restriction), with both buyback and brokerage available. Whether an average of +33% will continue is another matter, but the table above, calculated with zero exit value, can be regarded as the conservative case.

How much exit value one assumes changes the effective per-night burden considerably. For BASE L (10 nights/yr, ¥31.2M), we lay out (acquisition cost − recovery) ÷ (10 nights × holding years) on two axes: holding period (10, 15, 20 years) and recovery rate on resale (0%, 25%, 50%, 75% of acquisition cost). Only the 0%-recovery, 10-year case (¥312,000/night) exceeds the Kitakaruizawa location’s listed price of ¥253,300; at 15 years with 75% recovery it falls to ¥52,000/night. Because the average +33% resale gain rests on only 30 completed deals, this table keeps recovery rates below 100%.

BASE L (10 nights/yr, ¥31.2M): effective burden per night — holding years × recovery rate (¥ thousand/night)
Holding years \ Recovery rate0%25%50%75%
10 years31223415678
15 years20815610452
20 years1561177839
Our estimates. (Acquisition cost − recovery) ÷ (10 nights × holding years). Excludes management fees, self-use fees, fixed-asset tax and the opportunity cost of capital. The comparison listed price is the Kitakaruizawa location’s June 2026 all-plan average. Source: Compiled by MetroEngines Research & Consulting

Funding — Three Layers: Pre-Completion Sales, Regional-Bank Syndicated Loans and Capital Alliances

So where does the money to build these villas come from? Lining up the announced rounds: ¥850M in a seed round in September 2021; ¥1.96bn in Series A in October 2022 (cumulative ¥4.11bn); ¥10.5bn in debt financing in December 2024 (cumulative about ¥22.3bn); about ¥10.1bn in February 2026, combining ¥2.598bn in Series C with ¥7.5bn in debt from 18 financial institutions (cumulative ¥33.2bn including executed loans and commitment lines); and a total of ¥16.5bn on August 6, 2026. The August raise included capital alliances with Toyota Invention Partners (TIP), Toyota’s strategic investment company, and the G-Lion Group, and the company said it was preparing a partner loan for buyers with SBI Group. On March 31, 2026, SBI Shinsei Bank joined a syndicated loan arranged by Gunma Bank to fund construction of four “IRORI 2.0” villas at Kitakaruizawa (scheduled to open November 2027).

Announced funding rounds (¥100M)
The equity/debt breakdown of the ¥16.5bn raised in August 2026 is not disclosed. The March 2026 Kitakaruizawa syndicated loan is excluded because its amount was not disclosed. Source: Compiled by MetroEngines Research & Consulting from announcements and press reports

Seen from the developer’s side, the money flows in three layers. The first is pre-completion share sales: as with IRORI 2.0, contracts in units from ¥31.2M for 10 nights accumulate more than a year before opening. The second is property-level project finance, which in the Kitakaruizawa case takes the form of a regional bank arranging and other banks participating. The third is company-level equity and debt, with VCs, operating companies and financial institutions coming in. Whereas the membership-type Resorttrust recovers project costs before opening by selling memberships after construction starts, with a liability structure of ¥257.5bn in advances received and deposits against ¥6.1bn in borrowings, NOTA actively uses borrowings and equity on top of pre-completion sales, growing its locations to 9 in four years and 10 in six. Against cumulative contract value of ¥94bn, cumulative announced funding is around ¥50bn — ¥33.2bn as of end-January 2026 (including credit lines) plus ¥16.5bn in August — so the structure in which sales exceed funding is shared with the membership model.

How It Differs from Membership Resorts — Ownership, Resale, Inheritance and Depreciation

Finally, we compare fractional ownership and membership models on four axes. As set out in our previous article, membership sales consist of a deposit (10–20%), a registration fee (35–40%) and a real-estate portion (45–50%); the registration fee is non-refundable, the deposit bears no interest, and the right of use is at the center. A NOTA share is ownership of the land and building itself; the company describes it as “an asset that can be depreciated and inherited,” and it can be sold on the NOT A HOTEL 2nd marketplace from the fourth year.

Fractional ownership vs membership model
AxisFractional ownership (NOTA / NOT A HOTEL)Membership (Resorttrust example)
OwnershipOwnership of land and building. One villa = 360 nights/yr; shares from 10 nights/yr = 1/36Registration fee 35–40% + deposit 10–20% + real-estate portion 45–50%. Centered on right of use; registration fee non-refundable
ResaleFrom the fourth year after purchase, NOT A HOTEL 2nd (Type II Financial Instruments Business) handles buyback and brokerage. 30 deals, ¥1.06bn, avg +33% as of end-Nov 2025Sold through the membership secondary market (brokers). Involves name-transfer procedures and fees
InheritanceCan be inherited as property (company explanation)Can be succeeded via name transfer
DepreciationCompany says possible for the building portion (tax treatment for corporations/sole proprietors to be determined separately)Treatment of the real-estate portion depends on the product and tax judgment
UseNights owned (from 10/yr). Mutual use across all locations; bookable up to 10 months ahead for 10+ nights, 12 months ahead for 30+ nightsAnnual usage days according to number of units. Mutual use of group facilities
Unused daysSold to the public as a hotel. Lease contracts receive rent; loan-for-use contracts do notLimited public sales due to membership format
Ongoing costsLease: association management fee and software license fee; loan-for-use: monthly management fee (deposit, balance refunded at fiscal year-end). Both: land rent (depending on the house), fire and earthquake insurance settled semi-annually, fixed-asset tax (allocated by share), self-use fee (per-night rate)Annual fee (example: ¥130,000) and room charges
Developer cash flowPre-completion sales + property-level syndicated loans + equity and debtRecovers project costs before opening through membership sales after construction starts. Real-estate portion recognized as revenue in a lump sum at opening (deferred revenue)
Source: Compiled by MetroEngines Research & Consulting from the NOTA official website (“How to Buy,” “MARKETPLACE”), the settlement-rules document, Resorttrust “Resorttrust’s Business Model (February 2026)” and others

Comparing the two on per-night burden: the membership-model burden we estimated in the previous article was ¥77,400 per night (one room, two guests) for a 20-year holding, 8 nights a year and zero exit value. NOTA’s BASE L is ¥156,000 on the same zero-exit, 20-year basis, but it is a whole villa for eight, so the two-guest-room equivalent is ¥39,000. Whereas the membership model is a product for “buying annual usage rights over the long term,” fractional ownership is a product for “buying 1/36 of a property and staying in it,” and the share that can be recovered at exit determines the effective per-night burden. Taking the average +33% resale gain at face value, the effective burden over 20 years would fall well below cost, but this article does not go that far and shows cost only.

Implications for Hotel Operators and Investors

First, the fact that products whose “cost of the right to stay” exceeds ten times the local hotel rate keep selling out in resort towns shows that lodging prices are not determined by location ADR alone. A 30-night unit on Sagishima in Mihara City (ADR ¥5,700) sold for ¥389,037,000, and the Nasu location in Otawara City (¥5,800) is sold out, because the architect’s name, the brand and a network of mutually usable locations are creating the price. Even where the town ADR is low, there is room to attract high-rate lodging demand depending on product design. How closely lodging rates and land prices move together in resort areas is also discussed in our analysis of the rate and land-price gap between Karuizawa and Miyota.

Second, the shift from lease to loan-for-use contracts works to stabilize the developer’s cash flow. With no obligation to pay rent, and with owners’ monthly management fees held on deposit and drawn down as they stay, revenue from hotel operations is easier to separate from owners’ usage. For owners, the clarity of paying only for what they use remains. That newer locations are increasingly standardized on this contract is evidence that the company continues to refine its model.

Third, from the perspective of existing hotel operators, listed prices of ¥253,300 at the Kitakaruizawa location and ¥176,300 at the Fukuoka location mean that high-rate supply is being added at the very top of each area. At more than ten times Tsumagoi Village’s ADR of ¥13,800 and Chuo Ward, Fukuoka’s ¥16,100, these properties are less direct competitors than a means of surfacing demand at a new price tier. For operators targeting the upper tier in the same areas, this offers a reference for building products aimed at that demand.

Fourth, for investors, the depth of the resale market underpins new sales. At 30 deals and ¥1.06bn it is still small, but the very fact that a track record of +33% on average and up to 2.1x is published gives grounds to read the per-night acquisition cost calculated with zero exit value as a conservative floor. Against cumulative contract value of ¥94bn, cumulative announced funding is around ¥50bn (¥33.2bn at end-January 2026 + ¥16.5bn in August); this sales-first funding structure resembles the membership model, and the expansion into housing (POD) and mobility (NOT A GARAGE) follows the same “turn it into ownership” design.

Frequently Asked Questions

Q. How is 10 nights a year equal to 1/36?

Each villa is sold as a product usable 360 days a year, so a 10-nights-a-year share is 360 ÷ 10 = 1/36. Thirty nights a year is 1/12. The official “How to Buy” page states that a whole-villa purchase gives 360 days a year and a shared purchase starts at 10 days a year.

Q. When can a share be sold?

From the fourth year after purchase (a three-year holding restriction), on the marketplace operated by NOT A HOTEL 2nd. Both buyback and brokerage are available; as of end-November 2025, 30 deals totaling ¥1.06bn had been completed, with sale prices up an average of +33% versus purchase price.

Q. How much are the management fees?

They vary by location and house. The published figure is ¥554,400 per month for Setouchi (1 unit, 30 nights/yr; press report as of May 2025). Under loan-for-use contracts, this monthly management fee is held as a deposit, stays are charged against it at the per-night rate, and the balance is refunded at fiscal year-end. Separately, land rent (depending on the house) is charged monthly, fire and earthquake insurance premiums are settled every half-year, and fixed-asset tax is allocated once a year in proportion to the share.

References and Sources

■ Data sources

Estimated settled ADR by municipality (simple average of monthly values, October 2025–September 2026; N = range of properties covered per month) and the locations’ listed prices (June 2026) are aggregated by MetroEngines Research & Consulting. Share prices, capacity and addresses are from the official website viewed October 15, 2026; contract types and settlement rules from the company’s document published for owners; contract value, owner counts and funding amounts from company announcements and press reports.

■ Calculation assumptions

Acquisition cost per night = share price ÷ (nights owned per year × holding years). Two cases, 10-year and 20-year holding (15 years added in the sensitivity table), with zero exit value as the base case; only the sensitivity table applies recovery rates of 0–75%. The two-guest-room equivalent is a convenience conversion treating capacity ÷ 2 as the room count. Management fees were added only for Setouchi, where they have been published.

■ Limitations

Estimated settled ADR is an estimate; towns with fewer than 10 properties covered (Otawara City, Miura City) are reference values. Management fees, self-use fees (per-night rate), fixed-asset tax, real-estate acquisition tax and the opportunity cost of capital are excluded, so the actual total burden is higher. Prices for TOJI and Setouchi are press-reported figures as of May 2025 and are now sold out. The average +33% resale gain is based on 30 completed deals and does not indicate future sale prices.

■ Market data

  • MetroEngines Research & Consulting — Estimated settled ADR by municipality (October 2025–September 2026; properties covered per municipality shown as N= in the body tables), locations’ listed prices (June 2026)

■ Company materials

■ Financial institution and industry materials

■ News and press reports

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