Love Hotels, Prime Targets Of Japanese Investors

Lust is a prime motivator for those who frequent Japan's love hotels, but the subject of that hankering has moved from physical intimacy to making money, according to Dacapo.

Love hotels have become prime targets for investors because they provide high returns with comparatively low risks.

Global Financial Support has apparently found its Leisure Hotel Fund called the Hope Series to be a winner for investors and the hotels alike.

"The fund in this series guarantees dividend payouts of at least 8.4 percent over a year," Global Financial's Daisuke Kondo tells Dacapo.
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Global Financial's love hotel funds have seen increasing numbers of investors who have been willing to put ever more money into plans to get the shag shacks up and running.

Love hotel funds run for three years. Once they finish, the hotel is usually sold off, though sometimes the funds are maintained and investors stay on with them.

Love hotels are a steady business, with experts saying they offer a lot for investors looking for somewhere to put their money with minimal risk of losing it because the business depends on human instinct and is less susceptible to hiccups in the economy.

"Putting it simply, love hotels have a stable source of revenue. There aren't many companies getting into the business for the first time and there are an extremely small number of competitors," Kondo tells Dacapo. "Even if a competitor does enter the market, it's usually in an area where there are already a large number of love hotels, so it has a complementary rather than competitive effect. If couples go to a love hotel and find it fully booked, they're highly likely to go to another love hotel nearby and use that."

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