&Craft raises funds to turn empty buildings near Japan's train stations into inbound hotels
What's the deal? Nagano-based startup &Craft has secured investment from the Shinshu Startup Succession Support No. 2 Fund — a regional venture fund set up by Miraidor, Nagano Prefecture, and the Japan Finance Corporation (JFC). The co-ordinated investment and lending package also involves Hachijuni Nagano Bank and JFC.
&Craft plans to use the capital to launch a new inbound-focused hotel brand called 驛 (EKI). The concept: repurpose vacant buildings near major train stations across Nagano Prefecture into mixed-use accommodation targeting international travellers.
Founded in 2019 and headquartered in Nagano City, &Craft has built its reputation through design services, hospitality consulting, and operating its own properties. Its renovated traditional house "MICHI" in Nagano City and private sauna lodge "SORA" in Komoro have drawn strong reviews from foreign visitors.
Why now? Japan is experiencing a historic inbound tourism boom, with visitor numbers and spending hitting record highs. At the same time, regional cities face a growing stock of empty commercial buildings, particularly near train stations — a structural problem as populations decline outside major metros.
EKI sits at the intersection of both trends: it positions station-adjacent vacancies as transit-point lodging with community spaces where travellers and locals can meet. The brand name itself — 驛, an old kanji for "station" — signals the concept.
What could go wrong? Inbound tourism in Japan remains sensitive to exchange-rate swings, geopolitical tensions, and policy changes. A weaker yen has been a tailwind, but any reversal could slow visitor growth. Renovating older buildings also carries cost and regulatory risk, and regional hospitality outside marquee destinations like Kyoto or Tokyo must work harder to attract guests.
The signal: This deal reflects a broader pattern in Japan's startup ecosystem: regional venture funds backing businesses that turn local liabilities — ageing infrastructure, depopulation — into assets for the booming inbound economy. Miraidor's fund structure, co-ordinated with a prefectural government and a public lender, is a model gaining traction across rural Japan as regions compete for tourist spending beyond the golden route.
&Craft's bet is that the next wave of inbound travellers wants authentic, design-forward stays in lesser-known areas — and that the real estate to house them is already sitting empty.
Read more: prtimes.jp
