Annual revenue
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Booked nights (cap): —
Operating profit (NOI)
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Net yield
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Payback
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* 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.
| Licence | Annual cap |
|---|---|
| Minpaku (home-sharing) | 180 nights |
| Special-zone minpaku (Osaka etc.) | No cap (≥2 nights/stay) |
| Simple lodging / inn | 365 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.
How to use
What you'll learn: Project annual revenue for a minpaku / ryokan from rooms, ADR, occupancy and operating days.
- Enter the number of rooms, ADR, occupancy and operating days.
- Choose and adjust the options shown.
- Read off the projected annual revenue and profit.
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.