Established in 1630, Hakone Ryokan 'Ichinoyu' Announces '10 Billion Yen Declaration' for 2030, Transforming Business Model into Hotels and Private Villas
Ichinoyu, which operates hot spring inns in Hakone, has announced its '10 Billion Yen Declaration,' aiming to reach 10 billion yen in sales by 2030. In addition to its traditional inn business, the company will diversify into hotel and private villa operations, strengthening profitability through operational standardization and integration.
📋 Article Processing Timeline
- 📰 Published: May 21, 2026 at 02:10
- 🔍 Collected: May 20, 2026 at 17:32
- 🤖 AI Analyzed: May 20, 2026 at 18:10 (38 min after Collected)
Ichinoyu Co., Ltd. (Headquarters: Hakone, Kanagawa; Representative Director and President: Takaya Ogawa), which operates hot spring inns and villas in the Hakone area, announced that it has been recognized as a company under the '10 Billion Declaration' promoted by the Organization for Small & Medium Enterprises and Regional Innovation, Japan. Aiming to achieve 10 billion yen in sales by 2030 (compared to 2.8 billion yen in the fiscal year ending December 2025), the company is moving away from its traditional ryokan-centered business model. It will full-scale diversify into hotel operations and private villa rentals, shifting toward a structure that balances high profitability and growth through integrated management and standardized operational know-how.
Background and Challenges
While the company has focused on hot spring inns in the Hakone area, the traditional ryokan format struggled to meet diverse modern needs, such as long-term stays and full private spaces. Furthermore, reliance on manual labor methods limited the efficiency of profit generation, leading to stagnant growth. To overcome these issues and achieve leapfrog growth, the company issued this declaration.
Growth Strategy toward 2030
While maintaining existing ryokan businesses as a stable revenue foundation, the company will implement the following:
1. Portfolio Optimization and Increased Unit Prices
The company will expand the 'hotel business' as a growth driver and develop private villas as a high-value-added domain. For instance, 'ICHI-VILLA CROSSROAD HAKONE' began offering premium experiences like Yonezawa beef BBQ plans and new skincare amenities in April 2026, boosting customer spending.
2. Integrated Management and Standardization
The company is building a new headquarters structure that integrates three business formats: ryokans, hotels, and villas. By standardizing know-how to ensure repeatability in multi-store expansion, it aims to establish a leaner foundation that balances labor-saving with profit generation. It will also strengthen its development functions from property acquisition to planning.
CEO Comment
'This 10 billion yen declaration is not just about sales expansion. It is a promise to society to make lodging not just a special occasion but an extension of daily life, offering rich experiences by breaking fixed stereotypes of price and value.'
Company Profile
Centered on the historic 'Ichinoyu Honkan' founded in 1630, the company currently operates 9 inns and 1 villa in Hakone.
Background and Challenges
While the company has focused on hot spring inns in the Hakone area, the traditional ryokan format struggled to meet diverse modern needs, such as long-term stays and full private spaces. Furthermore, reliance on manual labor methods limited the efficiency of profit generation, leading to stagnant growth. To overcome these issues and achieve leapfrog growth, the company issued this declaration.
Growth Strategy toward 2030
While maintaining existing ryokan businesses as a stable revenue foundation, the company will implement the following:
1. Portfolio Optimization and Increased Unit Prices
The company will expand the 'hotel business' as a growth driver and develop private villas as a high-value-added domain. For instance, 'ICHI-VILLA CROSSROAD HAKONE' began offering premium experiences like Yonezawa beef BBQ plans and new skincare amenities in April 2026, boosting customer spending.
2. Integrated Management and Standardization
The company is building a new headquarters structure that integrates three business formats: ryokans, hotels, and villas. By standardizing know-how to ensure repeatability in multi-store expansion, it aims to establish a leaner foundation that balances labor-saving with profit generation. It will also strengthen its development functions from property acquisition to planning.
CEO Comment
'This 10 billion yen declaration is not just about sales expansion. It is a promise to society to make lodging not just a special occasion but an extension of daily life, offering rich experiences by breaking fixed stereotypes of price and value.'
Company Profile
Centered on the historic 'Ichinoyu Honkan' founded in 1630, the company currently operates 9 inns and 1 villa in Hakone.
FAQ
What is Ichinoyu's future goal?
The company aims to achieve 10 billion yen in sales by 2030.
What specific businesses will they operate?
They are diversifying into hotels and private villa rentals while maintaining their core inn business.
How will the management structure change?
They will unify the management of all three business types, standardizing operations to improve efficiency and profitability.