Hotel & Inn Business vs. Private Lodging: A Complete Comparison

One of the most common questions from people looking to start an accommodation business is: "What is the difference between a hotel/inn business and private lodging?" The answer is simple: if you want to start as a small side business, private lodging is suitable. If you aim to operate a full-scale accommodation business, a hotel/inn license is the way to go.

What is Private Lodging?

Private lodging is a business model based on the Private Lodging Business Act (Minpaku Law). Key features include: notification-based registration (not permit-based), a limit of 180 operating days per year, and requirements to maintain residential status. While relatively easy to start, revenue is limited due to operating day restrictions.

What is Hotel/Inn Business?

The hotel/inn business is based on the Hotel Business Act. Key features include: permit-based licensing, no annual operating day limits, and the ability to operate as a full-scale hotel or inn. This is the standard choice for those running accommodation as their main business.

Comparison Table

Kaisei's Perspective

In the current Tokyo market, choosing "hotel/inn business as a long-term operation" is increasingly more advantageous than "starting private lodging". Especially in the Ueno, Asakusa, and Katsushika areas, it is worth considering a hotel/inn license from the outset.

Summary

• Private lodging for side business
• Hotel/inn business for main business
• If you aim for future hotel operations, hotel/inn business is recommended