Singaporean opens Toyama ryokan in seven-figure bet

Ray Hoe, 41, is opening a boutique ryokan in Toyama, Japan, in September. The former Jones Lang LaSalle professional financed the purchase with stock market gains and an equity loan against his Singapore home. He had no hospitality experience and does not speak Japanese. He had never visited Toyama before he bought the property.

Hoe's career at JLL gave him exposure to international property markets in London, Tokyo, and New York. JLL carries an Alpha Score of 57, indicating moderate sentiment.

The property, Hooray Toyama, is a 77-year-old ryokan that had gone to auction after the pandemic shut Japan's borders. The third-generation owner had spent millions renovating it before reopening in 2019. Unable to survive two years of near-zero tourism, the property went to auction in 2024. Hoe lost the initial bid, then acquired it a year later when the winning bidder decided to sell. He redirected funds from a planned project in Hiroshima.

Hoe is betting on Japan's push to draw 60 million inbound visitors by 2030, nearly double the 2024 total of 36 million. A key part of that strategy is regional dispersal. "More people will be willing to go deeper into Japan rather than seeing the same things," Hoe said. Toyama sits at the end of the Hokuriku Shinkansen line. Most tourists ride through without stopping.

The ryokan has 11 rooms, two onsens, a roof garden, and a cafe. Breakfast is house-made sourdough with coffee. The baker originally lined up fell through, so Hoe's mother came from Singapore for three months to train the team. The hotel does not include a kaiseki dinner, which keeps prices accessible. Rooms start at about JPY¥14,400 a night.

Hoe assembled a team of bicultural staff. The general manager is half-Singaporean and half-Japanese. The front-desk staff is half-Brazilian and half-Japanese. The chef is half-Filipino and half-Japanese. The barista is Thai. Two Taiwanese women on the team have lived in Toyama for more than 20 years. Hoe is the only one who cannot speak Japanese. He sees that as an advantage. "Because I can't speak Japanese, I'm attracting local people who can speak English and Japanese to come work for me," he said.

Securing the hotel license took four years. Then his visa renewal was rejected under stricter immigration policies from Prime Minister Sanae Takaichi's administration. Hoe has found a co-partner to run on-the-ground operations while he handles the backend from Singapore. He intends to return to Toyama soon.

Monthly operating costs run around S$30,000 to S$60,000, depending on repairs. He has drawn no salary for 18 months. His advice to anyone following a similar path: do not sell your primary residence. "If you sell it and something goes bad, it's very hard to climb back onto the property ladder," he said.

Hoe projects a 10% return on investment over 10 years. His immediate goal is simpler: get the September opening right, accumulate the first real guest reviews, and prove that a Singaporean with no Japanese can run a ryokan in a town most tourists skip.

The hotel has been running a soft launch over the past two months. One group of eight guests from Taiwan arrived for a two-night stay and extended it to a full week.