Sparx Group Co., Tokyo, announced on Wednesday that it has partnered with Kachikaihatsu Co., Tokyo, to build a pre-fabricated 314-room hotel for relief workers and volunteers in Japan’s earthquake-stricken Miyagi prefecture.
The total investment for the hotel is ¥1.1 billion (US$14 million). In addition to this, Sparx is raising a ¥5 billion (US$65 million) fund to build two other hotels with a total of 1,500 rooms in Miyagi.
“There is a clear gap between supply and demand in the quake-stricken area when it comes to lodging,” Shuhei Abe, Sparx CEO told Bloomberg. “This presented an opportunity for an investor like us to participate in Japan’s reconstruction effort, while securing decent returns.”