Revitalization Project for Choeikan Ryokan in Iwate's Ugo Onsen Kicks Off with NBI Holdings and SMFL Mirai Partners

Revitalization of Choeikan Ryokan in Iwate's Ugo Onsen

In a significant move towards sustainable tourism, NBI Holdings, based in Minato, Tokyo, is spearheading a revitalization project for the Choeikan Ryokan, a storied inn in Iwate's Ugo Onsen area. This project has garnered the participation of SMFL Mirai Partners, a strategic subsidiary under Sumitomo Mitsui Finance and Lease, indicating a collaborative effort aimed at restoring the long-standing establishment and attracting more visitors to the region.

About Choeikan Ryokan

Choeikan, known for being one of the premier ryokans in the Tohoku region, ceased operations in 2024. However, its heritage and the wealth of natural hot springs, boasting an impressive flow rate of over 1,000 liters per minute, have marked it as a valuable asset for the local tourism industry. With plans to officially reopen in July 2026, these renovations are set to enhance the facility's appeal significantly.

NBI Holdings acquired Choeikan through its subsidiary, NBI Regional Revitalization Investment, back in April 2025. The partnership with SMFL Mirai Partners aims to rejuvenate Choeikan's brand and improve the overall appeal of the Ugo Onsen area, thus contributing to the broader revitalization of local communities.

NBI Holdings shares a vision of enhancing local society through sustainable development initiatives, aspiring to make a positive impact on Japanese regions. In tandem, SMFL Mirai Partners focuses on real estate as a primary sector, adeptly supporting partners in uncovering opportunities to resolve various local challenges, such as succession issues and regional developmental hurdles.

Renovation Details

The Renovation Objectives

The impending renovations will include a comprehensive overhaul of vital areas, such as the lobby, entrance, communal baths, and guestrooms. The updated design aims to celebrate the unique qualities of Choeikan Ryokan while making it a substantial tourist destination within the Iwate and Shizukuishi area.

The collaboration of NBI Holdings and SMFL Mirai Partners represents a fusion of shared philosophies, ultimately leading to the project’s realization. By reconnecting with the region’s roots and elevating Choeikan as a sustainable tourism asset, both companies strive to enhance community vitality.

Planned Facilities Post-Renovation

- Lobby & Entrance: A modern yet traditional aesthetic that welcomes guests in style.
- Public Bath: Upgraded facilities to leverage the excellent hot spring quality for an unforgettable relaxation experience.
- Guestrooms: The number of rooms will increase from 55 to 57, which will include options with semi-open-air baths, offering private luxurious retreats for visitors.

The Broader Impact

This renovation is more than just the remodeling of a historic inn; it symbolizes the resurgence of interest in regional tourism and the revitalization of local economies. The vision behind utilizing the Choeikan Ryokan as a community asset goes hand-in-hand with efforts to boost tourism in Iwate Prefecture while preserving the cultural heritage.

What’s Next?

As both NBI Holdings and SMFL Mirai Partners embark on this ambitious journey, the positive implications extend beyond the confines of the ryokan. The strategic transformation of Choeikan is poised to stimulate economic growth, enrich local lifestyles, and place Iwate’s Ugo Onsen back on the tourism map, encouraging travelers to explore its scenic beauty.

Stay tuned for updates on the progress of this exciting project, culminating in the grand reopening set for July 2026.