[Maximizing Profits Through Whole Building Redevelopment] 'illi Stays' with an Average Annual Occupancy Rate Exceeding 90% Reimagines an Old Office Building into a Boutique Hotel. 'illi Haku Asakusa' to Open in March 2026.

BARE NOTE STUDIO Co., Ltd. (Shibuya-ku, Tokyo; Representative Director: Ikumi Kuroki; hereinafter referred to as BNS), which plans, develops, and operates the hotel brand "illi Stays" specializing in group stays, will open "illi Haku Asakusa" in Asakusa, Taito-ku in March 2026. This will be the brand's first entirely renovated whole building property.

Based on the high operational performance of 'illi Stays,' which boasts an average annual occupancy rate exceeding 90% and an average stay of over 3 days across all properties, this project aims to regenerate aging buildings with declining liquidity into highly profitable accommodation assets. 'illi Haku Asakusa' was born from the desire of the building owner, who has been operating the business since 1968, to "preserve and regenerate history" and BNS's vision to "design spaces that can change lives." Stepping beyond the conventional unmanned operation model of 'illi Stays' on a floor-by-floor basis, this project establishes a manned system for the entire building, complete with a 24-hour front desk and lounge. By further enhancing hospitality and comprehensively addressing a wide range of accommodation needs, we will establish a stable value-up model that is not dependent on surrounding office rental market rates.

Moving forward, BNS will further strengthen its collaborations with fund-related companies and developers, and fully engage in large-scale projects.

Project Background | Establishing a Redevelopment Model to Transform Aging Buildings into "High-Profit Assets"

In fiscal year 2025, BNS's hotel brand 'illi Stays' will open 13 new locations, rapidly expanding its business scale to a total of 23 properties by the end of March 2026. Maintaining an average annual occupancy rate exceeding 90% across all properties and an average stay of over 3 days, the brand has recorded stable operational performance. Based on this track record, BNS has expanded its business domain from the conventional "floor-by-floor" hotel development to "whole building" real estate redevelopment, which fundamentally enhances the asset value of the entire building.

The core of this project lies in resolving the structural challenges faced by aging buildings in urban centers. Generally, buildings with small floor areas have low layout efficiency and often become difficult to lease due to a disconnect with modern needs. BNS redefines these physical limitations into "luxurious private spaces for accommodation, even if they are too small for offices" by integrating sophisticated design with amenities such as kitchens and washer-dryers.

At 'illi Haku Asakusa,' the brand's first full-scale whole building renovation, we will take a step beyond the conventional unmanned operation model on a floor-by-floor basis by adding a 24-hour front desk and lounge, providing even more meticulous hospitality than before. Illi...