Licence type
Rooms
rooms
Avg. nightly rate (ADR)
JPY
Occupancy
%
Operating-cost ratio
%

Cleaning, utilities, consumables (labour too if self-run)

OTA commission
%

Booking-site commission (Airbnb, Booking…). Usually 10–15%

Management fee
%

If you outsource operation (≈15–25%); 0 if self-run

Initial investment
×10k JPY

Annual revenue

Booked nights (cap):

Operating profit (NOI)

Net yield

Payback

* This is an estimate and not a guarantee of returns. Actual results vary widely with location, season, competition and operations. Confirm licensing requirements and your business plan with the authorities and professionals.

Licence type & the operating-night cap

A home-sharing minpaku (住宅宿泊事業) is capped at 180 nights a year. Special-zone minpaku (Osaka and others) or a simple-lodging / inn (旅館業) licence can operate year-round. The licence largely determines the return.

LicenceAnnual cap
Minpaku (home-sharing)180 nights
Special-zone minpaku (Osaka etc.)No cap (≥2 nights/stay)
Simple lodging / inn365 nights

Reading the metrics

ADR is the average nightly rate; occupancy is the share of operatable nights actually booked. Annual revenue = rooms × ADR × operating nights × occupancy. Operating profit (NOI) is revenue minus OTA commission, operating costs and any management fee. Net yield = NOI ÷ initial investment, which indicates the payback period.

FAQ

Minpaku vs. ryokan/hotel business?

A private-lodging (minpaku) business is notification-based and capped at 180 days/year; a ryokan/hotel or simple-lodging business is licence-based with no day cap. The tool lets you switch the operating-days assumption.

What is the 180-day rule?

Under the private-lodging law you may offer lodging on at most 180 days per year. Year-round operation requires a ryokan-business licence.

How many nights can a minpaku operate?

A home-sharing minpaku is capped at 180 nights/year. Special-zone minpaku or an inn licence can operate without that cap.

What is the OTA commission?

The fee paid to booking sites such as Airbnb or Booking.com — roughly 10–15% of revenue.