Seibu Fudosan to invest 29 billion yen in revamping Karuizawa cottages
- Adam German
- Jun 20
- 3 min read
On June 16th, Seibu Fudosan announced plans to revitalize a collection of 233 cottages at the Prince Grand Resort Karuizawa, located within the grounds of the Karuizawa Prince Hotel and operated by Seibu Prince Hotels Worldwide.
Rendering of the planned "Central Building. In addition to serving as the front desk for the villas, it will house service facilities such as a spa, sauna, and restaurant. Photo courtesy of R.E. Port News.
The project will draw on approximately JPY 29 billion generated through the asset recycling of Tokyo Garden Terrace Kioicho - part of an ongoing capital-recycle strategy.
The Karuizawa resort currently comprises an East zone (97 cottages) and a West zone (136 cottages). Many of the structures are over 50 years old, with an average size of just 55 m² - insufficient for accommodating larger groups and outdated relative to modern expectations.
To address this, the redevelopment led by architect Shigeru Ban will preserve existing trees and the natural terrain, expanding cottage sizes to an average of 88 m².
In the West zone, four new villas - the largest to be approx. 260 square meters - will be built in the area with the best views. Photo courtesy of R.E. Port News.
The number of accommodations will be reduced for a more spacious layout: the East zone will shrink from 97 to 41 units, and the West zone from 136 to 83.
In both zones, existing buildings - 10 in the East and 79 in the West - will be expanded and renovated to minimize environmental impact.
Rendering of a villa in the East zone. All units will feature piped-in onsen water and come equipped with a wood-burning stove. Photo courtesy of R.E. Port News.
The properties will also be rebranded from “cottages” to “villas.” Additionally, all villas will feature private onsen (hot spring baths) and wood-burning stoves.
There will be a focus on diversified targeting:
East zone: aimed at pet owners, families skiing together, and luxury-seeking travelers. A new central building will house villa reception services, a restaurant, spa, sauna, and indoor dog run.
West zone: designed for multigenerational families, golfers, and inbound travelers. Four new villas (260 m² each) with Asama Mountain views will be built, each offering a sauna, gym, spa treatment rooms, and even butler service. Enhancements throughout will include enlarged living spaces and overall convenience upgrades.
Renovation is scheduled for completion in the East zone by May 2027, followed by a phased opening across the West zone starting in spring 2028.
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At a press conference, Masahiro Eguchi, head of Seibu Fudosan’s resort development division, remarked: “Karuizawa is foundational to Seibu Group’s origin story, with over a century of development. While the Karuizawa Prince Hotel has undergone successive upgrades, the cottages - some more than half a century old - no longer meet evolving guest expectations. This renewal aims to elevate the value of the location and facilities, unlocking Karuizawa’s latent potential and ensuring sustainable growth.”
Seibu Fudosan also confirmed plans for a large-scale resort development in the Sengataki area of Karuizawa (approx. 22 ha), in collaboration with Nomura Real Estate.
Similar capital-recycle strategies and redevelopment plans will be extended to existing resorts in Furano, Nikko, Hakone, Kawana, and other regions across Japan.
Source:
R.E. Port News (Japanese only)
