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Japan: Vacation home shared ownership brand NOT A HOTEL has raised 5.5 billion yen [approximately US$35 million] in a Series B funding round to roll out its major expansion plans.
The round took place through private placement and a J-KISS [an acronym for Keep It Simple Security], a simple-term sheet framework for a convertible instrument for early-stage startups to obtain initial or seed financing. Under a J-KISS, investors acquire Stock Acquisition Rights as opposed to shares, making it more conducive for rapid fundraising.
It takes NOT A HOTEL’s total funding to date to around $10.5 billion yen [approximately US$67 million] and the startup is believed to be considering token-based financing in the future.
Promising to create “one-of-a-kind vacation homes around the globe that allow owners to make new discoveries”, NOT A HOTEL seeks to take the hassle out of home buying and guide consumers from purchase to ownership of a home or villa. The startup enables them to own their own property as an asset – giving them the choice of either full or partial ownership of a property – for any period between 30 days and a whole year.
Founded in 2020, the business has unveiled plans for six new domestic flagship properties, as well as expansion in two existing locations in Kita-Karuizawa and Aoshima, Miyazaki Prefecture. It expects the new locations to generate 100 billion yen / US$638 million in sales over the next two years.
The new flagship properties in Japan are:
- NOT A HOTEL TOKYO: Directed by brand designer NIGO, the project will be located in the suburbs of Tokyo
- NOT A HOTEL RUSUTSU: Situated at the Rusutsu Resort in Hokkaido, the property has been designed by international architectural firm Snøhetta
- NOT A HOTEL MIURA: A new location in Miura City, Kanagawa Prefecture
- NOT A HOTEL SETOUCHI [Hiroshima]: Three villas will be constructed on the remote island of Sakijima in the Seto Inland Sea
The expansion of its existing locations will include:
- Kita-Karuizawa: New additions include “MASU” by Masamichi Katayama and “WELLNESS” supervised by Yoko Shibata
- Aoshima, Miyazaki: Plans have been unveiled for a new house and renovation of existing facilities
Since its establishment four years ago, NOT A HOTEL has accrued 597 property owners, nine locations and a cumulative contract volume of 22.7 billion yen [US$145 million].
The company now plans to use the investment to attract wealthy international customers by launching a new global website, as it aims to revitalise Japan’s luxury villa market.
