"100-Year-Old Prison Transformed Into Luxury Hotel"... 'Cultural Heritage Hotels' Spread Across Japan

Easing Financial Burden Through Private Capital

Castle Town Revitalization in Regional Small Cities

In Japan, there is a growing trend of private companies transforming government- or municipality-owned cultural assets into hotels. These so-called "cultural heritage hotels," which repurpose sites such as prisons, closed schools, and historic homes as accommodations, are spreading across Japan.

This is the appearance of the "Old Nara Prison," built in 1908 and used as a prison and juvenile detention center for over 100 years. Screenshot from the Old Nara Prison Museum website

According to a report by Yonhap News on June 23, citing Nihon Keizai Shimbun, Hoshino Resorts, a well-known Japanese resort operator, will open the luxury hotel "Hoshinoya Nara Prison" on June 25. The hotel is a remodeled version of the "Old Nara Prison" (located in Nara City, Nara Prefecture), which is designated as an Important Cultural Property by the Japanese government.

Built in 1908, this facility was used as a prison and juvenile detention center for over 100 years before closing in 2017.

The Japanese government has retained ownership of the property but delegated only the operating rights to the private sector. This is the first time such a method has been applied to an Important Cultural Property. This private consignment operating model is gaining attention as an alternative to ease the burden of cultural heritage management faced by local governments.

According to the Japanese Agency for Cultural Affairs, as of last year, there were about 122,000 cultural properties designated by local governments, representing a 70% increase compared to 40 years ago. As the number of cultural assets grows, maintenance and management costs have also risen, increasing the financial burden on local governments.

On the other hand, when private companies take charge of operations, they can combine capital and expertise to help preserve cultural properties, while also reducing the financial burden on local authorities.

This is the interior view of a room at Hoshinoya Nara Prison Hotel. Screenshot from the Hoshinoya Nara Prison website.

Cultural Heritage Hotels Revitalize Local Communities... Remodeling Costs and High Accommodation Fees Remain Challenges

At the same time, there are ongoing efforts to use historic buildings to boost regional tourism.

Value Management Group, a company specializing in the reuse of historic buildings, plans to open a hotel in March 2027 by renovating four historic structures, including the registered tangible cultural property "Old Kajimura Residence" in Tsuyama City, Okayama Prefecture.

This area is designated as a Preservation District for Groups of Traditional Buildings of National Importance. The company will introduce a "dispersed hotel" model, operating guest rooms and restaurants distributed across various buildings in the village. Guests will be able to enjoy a unique experience as if exploring an entire old castle town.

In Iga City, Mie Prefecture, and Ozu City, Ehime Prefecture, former residences of feudal lords and similar properties are also being developed into dispersed hotels to revitalize local tourism.

However, the process of converting cultural properties into hotels involves significant remodeling and seismic reinforcement costs, which can lead to high accommodation fees. This remains a challenge.

Therefore, Nihon Keizai Shimbun added that the ability of private companies to develop differentiated content and continuously attract visitors will be key to the success of such projects.

This content was produced with the assistance of AI translation services.