Kyoto Okazaki Guesthouse Investment | 4-Storey Steel-Frame Building for Sale (JPY 230M) Near Heian Shrine & Museums

A fully licensed guesthouse in Sakyo-ku, Kyoto – ideal for inbound-focused hospitality investors

Property Overview

• Address: Tokusei-cho, Okazaki, Sakyo-ku, Kyoto City

• Price: JPY 230,000,000

• Structure: Steel-frame, 4-storey building

• Year Built: December 1974

• Land Area (registered): 60.99 m²

• Total Floor Area: 174.68 m²

• Zoning: Neighborhood Commercial Zone

• Building Coverage Ratio: 80%

• Floor Area Ratio: 300%

• Frontage / Roads:

  • Corner lot – two public roads

  • South: 14.7 m public road, frontage approx. 3.0 m

  • West: 3.9 m public road, frontage approx. 7.0 m

• License: Kyoto City Kanshi Shukusho (guesthouse) license obtained

• Nearest Station:

  • Keihan Main Line / Kyoto Municipal Subway Tozai Line

  • Sanjo Station – approx. 10 minutes on foot

• Current Status: In use (operating guesthouse)

 

Why Invest in a Guesthouse in Okazaki, Sakyo-ku, Kyoto?

Kyoto real estate investment has some unique characteristics compared to other cities in Japan.
One of the most attractive segments – especially for individual investors and small to mid-sized companies – is hospitality / lodging business.

You can enter the market with a single building and, if the property is well-located and properly licensed, achieve higher profitability than standard residential leasing.

Q: “I understand that Kyoto has many tourists, but why can hospitality properties be more profitable than ordinary rental apartments?”
A: One of the key reasons is the “regulatory hurdle” for obtaining a lodging license.

To start a legal guesthouse or hotel business, the building has to satisfy multiple requirements.

1. Land Use Zoning

Only certain use zones allow you to obtain a hotel / guesthouse license.

(Reference: Information for those planning to open lodging facilities based on the Inns and Hotels Act in Kyoto City – Kyoto City website)

Because of these zoning restrictions, not every building in Kyoto can be converted into a legal guesthouse, which naturally limits supply.

2. Building Type – Machiya vs. General Buildings

In Kyoto, properties for guesthouse use broadly fall into two categories:

• Traditional Kyoto Machiya townhouses, and

• General (non-machiya) buildings

2-1. Kyoto Machiya

“Kyoto machiya” usually refers to wooden townhouses built before 1950.

For machiya properties, you may see:

• “Machiya cards” used by financial institutions,

• “Machiya certification” used for renovation subsidies by the city, etc.

However, these systems are not directly related to guesthouse licensing. What matters for running a legal guesthouse is whether the building meets the Inns and Hotels Act standards and local regulations.

One point to note:
Many machiya have unregistered extensions or parts added later. If those extensions are from before 1950, they may still be treated as part of the machiya, but methods to verify this are limited and require careful checking with specialists.

(Reference: Procedures for changing to receive special treatment for the front desk in Kyoto machiya – Kyoto City)

-2. General Buildings (Non-Machiya)

For general buildings, especially when you plan to start a new guesthouse operation, the property must comply with the Kyoto City Barrier-Free Ordinance and other regulations.

In practice, this often means:

• Barrier-free access

• Upgraded fire safety / evacuation plans

• Sometimes renovation work close to “quasi-new-build” level

On top of that, a revision of the Building Standards Act is scheduled for 2025, which is expected to make procedures more complex and time-consuming for certain renovation projects.

(Reference: Impact of the 2025 Building Standards Act revision on renovation projects (reduction of the No.4 exemption)
Reference: Kyoto City Barrier-Free Ordinance)

Because of these regulatory and technical hurdles, not every building can be realistically converted into a profitable, licensed guesthouse.

That is why already-licensed properties in good locations, like this one in Okazaki, have a distinct advantage.

Property-Specific Strengths & Usage Ideas

Steel-Frame 4-Storey Guesthouse – Structural Advantage

While many traditional buildings in Kyoto are older wooden houses, this property is a steel-frame, four-storey structure, giving it a higher level of structural strength and a more predictable maintenance profile compared to many older timber buildings.

This makes it attractive not only as a pure guesthouse investment, but also as a hybrid asset that could serve as:

• A second home / private base in Kyoto, plus

• An income-generating guesthouse when you are not using it yourself.

Bedrooms

The bedrooms in this property are uniquely designed.

One of the standout features is a bedroom with white stones spread across the floor area, giving it a modern, stylish and almost gallery-like atmosphere.

Balcony & Views

Thanks to Kyoto’s strict scenic regulations, there are few high-rise buildings in the immediate surroundings, and the balcony enjoys a pleasant open view.

This makes the property suitable not only as an investment, but also as a personal retreat for owners who wish to spend part of the year in Kyoto and rent it out as a guesthouse when they are away.

Semi-Open-Air Bathroom – A Strong Selling Point

The property features a semi open-air style bathroom, which is a powerful differentiator.

On platforms like Airbnb, the “bath” is treated as an independent search tag and a major filter item. Attractive bath / spa areas often:

• Increase click-through rates

• Improve listing photos

• Support higher daily rates (ADR)

In other words, the bathroom here is not just a facility – it is a marketing asset.

Living Room

The living area is a tatami room with a distinctive lighting design, creating a refined Japanese atmosphere.

• Ideal for guests who want a “Kyoto-style” stay

• Works well for group photos and social media posts, which in turn can support organic word-of-mouth and repeat bookings

Further Information and Consultation

Detailed materials on the profitability and financial performance of this property are available upon request.

• If you would like to review income and expense simulations,

• Or if you are considering changing the current operator or management structure,

please feel free to contact us.

At ShuJu不動産 (ShuJu Fudousan), we can also introduce local Kyoto hospitality operators who specialize in guesthouse and small hotel management.

Contact

For inquiries about this property, please contact ShuJu不動産.

Click [here] for our official LINE account.
Please mention “Property No. 0288” when you contact us.