A renovated guesthouse located just 7 minutes from Kyoto Station has made a gross turnover of 1 million Yen (approx. 9,150 USD) in the first month of operations.
Yadoru Kyoto Washi-no-Yado is a 102-year old traditional Kyoto machiya-style townhouse that was given a full renovation and converted into a holiday rental. The occupancy rate for the month of July was over 97%. Over 80% of the guests have been foreign travelers, with visitors from China and Taiwan making up 60% of bookings.
The guesthouse has a total floor area of 80 sqm (861 sq ft) and can accommodate up to four guests. Nightly rates range from 32,500 ~ 50,000 Yen (approx. 300 ~ 450 USD). Over 70% of the guests have been groups of 4, while groups of 3 have accounted for 12% of bookings. Almost half of the bookings were for one night, with 39% of guests staying for 2 nights and 14% staying for 3 nights.
As at the end of July, the guesthouse had 17 nights booked for August with expected revenue of 650,000 Yen.
The historic townhouse was purchased as an investment by the current owner for 45 million Yen (approx. 412,000 USD) and approximately 18 million Yen (165,000 USD) was spent on renovations and furnishings. The management of the guesthouse is outsourced to a hospitality and management company, who then pays a percentage of monthly revenues to the property owner. In July, the owner was paid 410,000 Yen.
The management company operates a total of 12 guesthouses in Kyoto with average occupancy rates of 84%.
The Booking.com listing for this guesthouse can be viewed here:
Source: PR Times, July 31, 2017.