400-year-old Nagano company opens container hotel and prepares luxury villa in Iiyama

On September 9^th, the Nikkei Shimbun reported that Sumihei Corporation, a construction materials trading company founded in 1614 and based in Nagano City, entered the hospitality business.

Courtesy of MACHINAKA.

Following the launch of a sauna-equipped container hotel in central Nagano, the firm plans to open a luxury rental villa converted from a 130-year-old farmhouse in Iiyama, Nagano Prefecture, in 2026.

Central Nagano container hotel photo courtesy of MACHINAKA.  Photo dated February 2025 hence the remnants of snow on the ground.

The move leverages the firm’s construction expertise to capture demand from Japan’s growing inbound tourism market.

Container Hotel with Sauna in Central Nagano

In February, the company opened Container Hotel & Sauna MACHINAKA, located about a 10-minute walk from Nagano Station, near a major downtown intersection. 

Courtesy of MACHINAKA.

Each 14-square-meter room, repurposed from a container, comes equipped with two beds, a refrigerator, and a television. Adjacent containers house a private sauna and bathroom.

Courtesy of MACHINAKA.

The property accepts only one group per day, with rates set at ¥8,500–10,000 per person per night and an additional ¥5,000 sauna fee.

Courtesy of MACHINAKA.

Occupancy has averaged around 70% over the past two months, with 20 - 30% of guests already returning customers. “It’s been a solid start less than six months after opening,” said Keiji Hirai of Sumihei’s CLF Business Division.

From Charcoal to Cement to Hospitality

Sumihei originally dealt in charcoal and sericulture tools before moving into cement in the 1890s. Today, it focuses on cement and ready-mix concrete sales and construction materials, generating around ¥14 billion in annual revenue.

Past projects include work on the large eaves of Nagano Station and the Nagano City Arts Center.

Despite challenges such as the construction downturn following the 1998 Nagano Winter Olympics, the company has pursued growth by embracing new materials and ventures.

Its entry into hospitality stems from the idea of creating value not only by building and demolishing but also by reusing and adapting existing structures.

Reuse as a Core Concept

The hospitality venture emphasizes reuse. For the hotel, containers once used as offices were remodeled into guest rooms and sauna units. The upcoming luxury villa in Iiyama will similarly transform a traditional farmhouse into high-end accommodation, with nightly rates expected to range from ¥200,000 to ¥300,000.

Target guests include affluent domestic travelers and international visitors heading to nearby ski resorts such as Nozawa Onsen.

Growth Strategy Toward 2030

Foreign investors have been developing ski destinations across Hakuba, Shiga Kogen, and neighboring Niigata’s Myoko area. Sumihei aims to build expertise in both flexible container-style lodging and premium rental villas, allowing it to deploy the right format according to location and demand.

The company plans to open 10 properties in the Nagano area by 2030.

Looking ahead, Sumihei is considering packaging its container hotel and sauna designs for external sales. Some accommodation providers have already inquired about installing container saunas, and the company plans to scale its hospitality business step by step in line with demand.

Source:

Nikkei Shimbun (Japanese only; paywalled)