When considering starting an accommodation business in Hokkaido, many people aren’t sure who to consult first. With so many options—minpaku (private lodging), ryokan/hotel licensing, and simple lodging—plus Hokkaido’s unique regulations and climate conditions to factor in, expert guidance is essential. This article walks you through the exact process, step by step, from initial inquiry to contract, for anyone considering Stay Buddy Co., Ltd. as a partner for their Hokkaido accommodation business.
Stay Buddy specializes in vacation rental management, offering one-stop support that covers everything from property selection and permit applications to ongoing operational assistance. The company has extensive knowledge of the Hokkaido accommodation market, with accumulated expertise in year-round guest acquisition strategies and inbound tourism support. Because Stay Buddy provides a reassuring, beginner-friendly consultation process, understanding the overall flow in advance will help you launch your business smoothly.
Key Things to Know Before Consulting on a Hokkaido Accommodation Business
Types of Licenses for Starting an Accommodation Business in Hokkaido
To start an accommodation business in Hokkaido, there are broadly two paths: obtaining a license under the Hotel Business Act (hotel/ryokan operations or simple lodging operations) or filing a notification under the Private Lodging Business Act (the “Minpaku New Law”). Licenses under the Hotel Business Act come with no limit on annual operating days, but the facility and fire safety standards are strict—initial renovation costs alone can run from ¥3 million to ¥10 million in some cases. Notifications under the Minpaku New Law, on the other hand, involve relatively simple procedures but limit annual operation to 180 days or fewer.
In addition, individual municipalities across Hokkaido may impose their own supplementary ordinances. For example, in Sapporo, minpaku operations in residential-only zones face restricted operating periods, and rules vary from area to area. If you acquire a property without understanding these ordinance differences, your projected revenue model may fall apart—making it essential to consult an expert during the business planning stage.
What Makes the Hokkaido Market Unique
Hokkaido is one of Japan’s premier tourist destinations, welcoming over 50 million domestic and international visitors annually. In the Niseko area, nightly rates during the winter ski season can reach ¥30,000–¥80,000, while the Furano/Biei area sees high occupancy during the summer lavender season. Within Sapporo city, steady year-round demand from business travelers and events makes an average annual occupancy rate of 60–75% a realistic target.
That said, Hokkaido carries unique risk factors, including winter heating and snow-removal costs. For standalone houses, heating costs alone during December through March can reach ¥30,000–¥80,000 per month. You’ll also need to budget for pipe-freezing prevention and roof snow removal—cost structures quite different from accommodation businesses on Honshu. Consulting with a partner well-versed in Hokkaido’s accommodation industry is invaluable for building a business plan that accounts for these factors.
Step 1: Contacting Stay Buddy
How to Get in Touch and What Happens First
You can reach out to Stay Buddy through the inquiry form on the official website or by phone. The form asks for details such as “area under consideration,” “whether you already own a property,” “preferred business format,” and “estimated budget.” Preparing this information in advance will help things go smoothly. After submitting your inquiry, a representative typically contacts you within 1–3 business days to schedule your first hearing session.
There is no charge whatsoever at the initial inquiry stage. Even if you’re still in the “just gathering information” phase without concrete plans, Stay Buddy is happy to assist—so feel free to reach out. For anyone interested in Hokkaido’s accommodation industry but unsure where to start, this first inquiry is the crucial first step.
Step 2: Hearing Session and Current-Situation Analysis
Online or In-Person Hearing
The initial hearing session takes place either via an online meeting tool like Zoom or in person at Stay Buddy’s office, typically lasting 60–90 minutes. During this session, you’ll be asked in detail about your business goals (asset management, side business, or full-time venture), your maximum budget, preferred areas and property types (standalone house, condo unit, or full apartment building), and your desired level of hands-on involvement.
If you already own a property, you’ll share details such as its location, floor plan, building age, and current zoning designation. Based on this information, Stay Buddy will give you an initial assessment of whether the property can be licensed and a rough estimate of expected revenue. For example, they might suggest a monthly revenue of ¥150,000–¥250,000 for a 1LDK condo in Chuo Ward, Sapporo, or ¥400,000–¥800,000 for a standalone house in Niseko during winter—giving you a concrete sense of your business direction.
Step 3: Property Survey and Business Plan Development
On-Site Property Inspection and Regulatory Confirmation
Based on the hearing session, Stay Buddy staff will conduct an on-site inspection of the property. This survey checks the building’s structure, condition of equipment, fire code compliance, surrounding environment, and availability of parking. In Hokkaido especially, insulation performance, type of heating system, and presence of snow-melting equipment are critical checkpoints. At the same time, Stay Buddy can handle preliminary consultations with the local health center and fire department on your behalf, so any renovation requirements needed for licensing become clear early on.
If you haven’t yet acquired a property, you can also get introductions to candidate properties through Stay Buddy’s network. They’ll propose options based on location factors well-suited to an accommodation business—such as distance from the nearest station, access to tourist attractions, and proximity to convenience stores and other amenities.
Creating a Revenue and Expense Simulation
Based on the results of the on-site inspection, a detailed revenue and expense simulation is prepared. On the revenue side, expected nightly rates and occupancy on platforms like Airbnb and Booking.com are calculated using regional performance data. On the expense side, both initial costs (property acquisition, renovations, furniture and appliances, and permit application fees) and ongoing running costs (rent, utilities, cleaning, management fees, consumables, and insurance) are itemized.
For instance, a typical 1LDK property in Sapporo might require an initial investment of ¥800,000–¥1,500,000 including furniture and appliances, with monthly running costs of around ¥80,000–¥150,000. This simulation provides concrete figures for payback period and annual net income, giving you solid data to inform your business decision.
Step 4: License Application and Launch Preparation
Support with Government Procedures
Once you’ve agreed on the business plan, the license application process begins. Stay Buddy works alongside administrative scriveners (gyoseishoshi) and fire safety specialists to help prepare required documents and handle applications to the health center and fire department. For Hotel Business Act licenses, the process from application to approval typically takes 1–2 months. For Minpaku New Law notifications, a notification number is usually issued within 2–4 weeks, provided all documents are complete.
Some municipalities in Hokkaido require advance notification to neighboring residents. For instance, Sapporo requires businesses to notify nearby residents at least 14 days before opening, including distributing a written notice with contact information for complaint handling. Stay Buddy provides specific guidance on these region-specific procedures, making the process manageable even for first-timers.
Interior/Equipment Setup and Photography
Alongside the license application process, interior design and equipment setup for the lodging facility move forward. Stay Buddy also offers interior coordination proposals designed to boost guest satisfaction. For Hokkaido properties, natural styling that evokes warmth of wood, or Japanese-modern design, tends to be popular with inbound guests. Stay Buddy can also arrange procurement of furniture, appliances, bedding, and amenities—typically costing ¥300,000–�¥600,000 for a full 1LDK setup.
Another important step is photographing your listing for OTA platforms. Stay Buddy can arrange for a professional photographer, since compelling photos significantly influence booking rates. In fact, data shows that listings using professional photography see booking rates improve by 20–40% compared to those using smartphone photos.
Step 5: Contract Signing and Launch
Details of the Management Contract
Once all preparations are complete, you’ll formally sign a management contract with Stay Buddy. The contract covers reservation management, guest support (including multilingual assistance), cleaning arrangements, review management, pricing adjustments, and submission of sales reports. Management fees are typically set as a percentage of revenue, with the specific rate based on the estimate provided during the hearing session.
Contract terms and cancellation conditions are also clearly established at this stage. Stay Buddy provides thorough explanations in advance regarding minimum contract periods and any cancellation penalties, minimizing the risk of future disputes. You’re welcome to ask as many questions as needed until you fully understand the contract terms.
OTA Listing and Launching Guest Acquisition
After the contract is signed, listings are created and published on major OTA platforms such as Airbnb, Booking.com, and Rakuten Travel. Listing titles and descriptions are optimized with search algorithms in mind, and compelling content is crafted to highlight Hokkaido’s tourism appeal. During the first 1–2 months after listing, strategic pricing is often used to build up initial reviews—commonly starting 10–20% below market rate to boost occupancy.
After launch, monthly sales and occupancy reports continue to be shared, along with ongoing recommendations for seasonal pricing adjustments and facility improvements. Since Hokkaido experiences dramatic seasonal demand shifts, marketing tailored to different target segments in summer versus winter is essential—and this is precisely where Stay Buddy’s operational expertise proves most valuable.
Contact Stay Buddy Co., Ltd.
If you’re considering starting an accommodation business in Hokkaido, please reach out to Stay Buddy Co., Ltd. first. From the property search stage through license applications and post-launch guest acquisition and management, you’ll receive comprehensive one-stop support. The initial consultation is free, and online sessions are available, so even those living outside Hokkaido can easily take advantage of the service.
Stay Buddy has a proven track record of launching and operating numerous accommodation facilities. Our staff, deeply familiar with Hokkaido’s seasonal fluctuations and inbound tourism demand, will propose the optimal plan tailored to your specific situation. There’s no need to have a fully formed plan—even vague ideas are welcome. We’re happy to answer straightforward questions like “I have this property—could it work for an accommodation business?” or “Which areas offer the best profitability?”
As outlined in this article, every step from inquiry to contract comes with thorough explanations and support, so even first-time entrants into the accommodation business can feel at ease. Please don’t hesitate to reach out through our official website’s inquiry form or by phone. Let’s take the first step toward your Hokkaido accommodation business together with Stay Buddy.
