Hotel New Daishin in Choshi, Chiba Prefecture, has remained closed since late 2025 despite promises of renovations, exposing what appears to be a broader business unraveling. The facility, known for its open-air baths and local seafood, suddenly suspended operations with minimal notice. Guests reported being unable to contact the hotel, and subsequent visits revealed a building with no signs of construction, raising questions about the company's operational integrity.

This closure appears as part of a pattern, as the same company has acquired at least 37 hotels and nursing care facilities across Japan since 2020, with 24 now closed or out of business. Facilities purchased for between 1-5 million yen were subsequently resold to Chinese buyers for 40-100 million yen, while operational control remained with the company president. The business model involved acquiring facilities with minimal investment, then capitalizing on location-based value.

Former employees revealed the business may have been linked to Japan's "Business Manager" visa system, with the president emphasizing how ownership could facilitate residency visas. At a nursing care facility in Funabashi, 15 residents were displaced after operations deteriorated due to unpaid expenses. When confronted, the president refused to respond without legal counsel, leaving former staff describing conditions as a "living hell" and raising serious questions about regulatory oversight.