Aya Lodge Madarao, IIyama City, Nagano Japan
Rated #1 on Trip Advisor
One of the Best Properties in Madarao Mountain Resort
 
 
Key Property Details
  • Address: 11492-335 Hachibouzuka, Ooaza-Iiyama, Iiyama City, 389-2253, Nagano
  • Renovated: 2017, 2018 & 2021
  • Structure: Concrete Footing + Steel & Timber Frame
  • ​Land Size: 1,192 m2
  • Building Area: 463.39 m2
  • ​Location: Madarao Mountain Ski Resort
  • Access: Roadway ( 4WD during Winter Season )
  • Guest Rooms: 12 + 2 x Staff Rooms (sleeps 4 staff )
  • Accommodation: Up to 30 Guests
  • ​Licence: Inn / Ryokan
  • Website: Click Here for Details
Location & Access
Regarded as one of the best locations in Madarao Mountain Resort
150 metre, easy walk to ski area boundary, ski home in most conditions.
Aya Lodge Madarao
Aya Lodge Madarao is one of the latest Madarao Mountain Ski accommodations to be renovated appealing to western ski enthusiasts and international guests.  Aya Lodge has been designed to operate as a bed & breakfast lodge style accommodation with a variety of room configurations. With a focus on comfort, style, and good old-fashioned mountain hospitality - we love making sure our guests have an amazing stay, never want to leave and always want to return back to the comfort and convenience of Aya Lodge.

Aya Lodge Madarao has 12-rooms with a total of 30-beds in varying configurations to suit twin share, couples, triple share, families, and groups. We have a mix of private and shared bathrooms that are newly renovated, with forest, valley, and mountain views. The lodge is equipped with a dining room, bar, games room, laundry, ski drying room and is conveniently located an easy 150m walk to the ski runs and ski home in the right conditions. Local shops and restaurants are an easy 5-minute walk away.

Aya Lodge perfectly caters for the discerning guests that are looking for a fantastic location close to the lifts, with stunning views of the mountain and valley, with relaxed style and comfort... and let's not forget our reputation for serving one of the best western breakfasts in Madarao.  Aya Lodge is fully licensed and as such, does not permit outside alcohol or food inside the dining room and lounge.  Our bar is open for Apre drinks between 4pm till 9pm each day.
Watch our brief Promo Video below
Photo Gallery
Property Details
  • 150 meters from the ski area boundary, easy walk to slope, ski home in the right conditions
  • Vehicle ​Road access in winter to the front door and parking on-site if required subject to snow clearing
  • ​12 Guest Rooms (sleeps up to 34) + 2 Staff Rooms (sleeps 4) - Licensed as a Ryokan / Guest Lodge for 30-people.
  • ​5 x Guest Rooms with Ensuite, 2 x Shared Bathrooms for private use and 1 x dedicated bathroom for Family Suite 522
  • ​3 x Family Rooms (sleep 4-5 x people), 2 x Quad Share, 7 x Twin / Couple Share
  • ​All guest rooms have hydronic underfloor heating
  • ​Male & Female Sento bathrooms located on the basement level ( clean original condition, used by staff )
  • ​Commercial Kitchen & appliances. Suitable for onsite restaurant and other income.
  • ​Large Dining Room for 20-30 guest dinners
  • ​All equipment, furniture, fixtures and linen included
  • ​Lounge Room with spectacular views of Mt Madarao ( 5 x Guest Rooms have mountain views ).
  • ​Games Room 
  • ​Laundry room with onsite washer and dryer.
  • ​Ski room
  • ​NEW Boiler system - installed 2021, first used 2022/23 season.
  • ​NEW Kerosene tanks and plumbing.
  • ​NEW Sewer connection to boards main.
  • ​Snowblower included
Aya Lodge has it all for the astute investor or perfect as a private lodge for personal use and enjoyment as a syndicate.

Site & Floor Plan

Investment Brief
  • For Sale > Land & Building as a going concern: $750k USD - all genuine offers considered.
  • Operating Business: Included ( Aya Lodge Madarao KK, Japanese corporation )
  • Operating Equipment, Fixtures & Fittings: Included, this is a complete 'turnkey' sale, fully operational.
  • ​Marketing Assets:  Established market position with Facebook, Instagram, Youtube, Direct Website, integrated Reservation System ( Lodgify ), 10 Exceptional rating on Booking .com and #1 rating on Tripadvisor.
  • Terms:  Standard 10% deposit and settlement time as agreed between the parties.
  • Funding:  Please note, it is impossible to get debt funding in Japan as a foreigner.
  • ​Reputation:  Aya Lodge is regarded as one of the best private lodges in Madarao that sets a new benchmark standard for quality, service and value for money. This is a complete turn key purchase whereby you can own and operate this spectacular asset for the 2024/25 winter season, with nothing to spend except operational outgoings from booking revenue ( and any of your own styling or improvements ).
  • Soft Handover:  Included in the sale is all the current and future bookings, and, we will manage the lodge as part of a soft handover for the 2024/25 season, with all the staff and management in-place.

Syndicate Option

  • If there is enough genuine interest in fractional ownership, we will consider syndicating the lodge in a Unit trust structure, made up of 11 x Units valued at $100k AUD / Unit, and, we would remain in the syndicate and part of the management team.  We have successfully done this in Akakura Onsen.
Email enquires to drewjinnes@gmail.com

Reviews

Madarao & Surrounding Area
Madarao and the surrounding area in the Japanese Alps boasts some of the world’s most renowned and rideable powder snow conditions with a consistent average snowfall of 15 meters recorded year on year. Last season 2019, Madarao itself recorded 11+ meters of snow between December - March.

Madarao and the surrounding area is currently witnessing exponential growth of international and local tourism creating a high demand in the market for quality accommodation and dining services. This gap in the market is attracting a large number of local and foreign investors to the area due to the increase in winter tourism from mainland China, the broader Asian markets like Korea, Singapore, Hong Kong to name a few, Australia and rising interest from UK/Europe and the USA.

Madarao is situated north of Tokyo, 2 hours by train and is only a 45-minute drive from Nagano (host of the 1998 Winter Olympics). Akakura Onsen, Nozawa Onsen & Lotte Arai and this general region of Myoko Kogen, are well known across Japan for the quantity and quality of snowfall each year. It is renowned for favourable weather conditions compared to other well-known ski resorts in the country and its epic world class powder tree skiing.

From the town centre, visitors are meters away from the main ski area with Madarao being located at elevation, 12 kms from the local town of IIyama. It also has access to 6 other magnificent ski resort towns within 30-45 minutes’ drive from the town centre. During the non-winter months there are many activities such as mountain climbing, hiking, mountain biking, wake boarding, stand up paddle boarding and fishing at the lakes close by and even an 18-hole golf course on the backside of the mountain village in Tangram.

The area also consists of magnificent lakes, towering forests, ancient temples, majestic waterfalls, stunning mountain ranges and traditional natural Onsens offering a wide variety of attractions close by.
Investment Considerations
With international travellers landing in unprecedented numbers to explore Japan, the total number of overseas visitors is predicted to reach an all-time high of 35.5 million people with a year-on-year increase of 12.3% in a post-COVID recovery.

The number of foreign travellers visiting Japan in 2018 reached around 30 million for the first time in December and the inbound market for visitors to Japan in 2019 is expected to continue growing. In particular, countries which showed stronger growth to Japan in the previous year included Australia, Vietnam, Thailand, and the Philippines.

In addition to this there is the year on year increasing popularity of Japan during the winter months from countries and regions such as China, Korea, Hong Kong, Singapore, UK, Scandinavia, USA and Canada as travellers visit the popular ski resort destinations that offer consistent and abundant powder snow conditions that more than rival Europe, USA and Canada.

The rise in popularity is not something that has happened overnight. It was over 10-years ago the word got out about the influx of Australian skiers to Niseko & Hakuba. Following this spike, Australian driven investment into Niseko has resulted in it becoming an internationally-friendly town with facilities that cater to foreign visitors - a luxury that was still rare at the time amongst local Japanese Onsen Ski towns.

While Niseko has attracted significant foreign investment and property prices continue to rise to staggering values now driven off wealthy Asian investors (China, Korea, Hong Kong & Singapore ), the side effect is many skiers and snowboarders have been left feeling somewhat disappointed over the lack of “old Japan” cultural experiences.

This has created opportunity in Madarao Mountain Resort which is easily accessed from Tokyo by Shinkansen in under two hours. More and more tourists are drifting away from the over saturated westernised resorts of Niseko & Hakuba in search of the fabled powder snow and Japanese cultural vibe of Madarao Mountain ( and don't forget our reputation for the best lift-accessed tree skiing in the fabled 'Madapow' ). The area is now on the cusp of a 10-year cycle of rejuvenation driven off the back of the demand for international standards of accommodation.

Madaro meets all the criteria for international snow enthusiasts and investors. It is less developed and more traditionally Japanese than Niseko and Hakuba, has more variety in skiing than Nozawa Onsen and sits between Myoko Kogen and Nozawa Onsen and as such is the most central resort in this part of Nagano. Most importantly, it receives more snow than most of the other Nagano resorts.

In the past 5-years we have witnessed;
  • Increased volume of foreign and domestic visitors fuelling property investment and subsequent price increases.
  • ​30+ foreign property purchases since 2017 in Madarao
  • ​Foreigner purchasers from Australia, Holland, New Zealand and Asia.
  • ​Significant capital investment into restaurants, bars and equipment hire in addition to the renovation of the on mountain lodges and hotels including electronic ticketing and gates on the mountain.
  • ​There are plans on foot for the rationalisation of an area of Madarao to accomodate a lift upgrade
  • ​The recent purchase of Madarao Mountain Resort by Singapore Patience Capital Group, who plans to invest $1.42 Bn USD into the Myoko, Lake Nojiri and Madarao Kogen region, to create ski resort areas that will rival Niseko over the next 10-years.
This opportunity for the astute investor or investment syndicate won't last ...
Why Madarao?
Buying property in ski resorts is increasingly popular with international investors not only because of the booming inbound ski tourism market but because Japanese ski property has some fundamentals that make it a worthwhile investment. Japan is one of the few countries in Asia where foreigners are able to purchase freehold land without complex legal structures or local majority partners, that means ownership is clean, easy and secure.

The challenge in locating a property is deciding where to purchase among the 500 odd ski resorts still operating in Japan. Purchasing too early in a resort that is undiscovered could leave you literally out in the cold while you wait for your resort to be “discovered” and buying too late means you will pay a premium and suffer from low returns. There are some fundamentals to Madarao that make it an attractive investment proposition for international investors or someone just looking for a private lodge for friends and family.


Ski conditions

Madarao is not a large resort but it has incredible terrain, legal tree skiing and a very reliable snowfall; a bad season at Madarao is 9m of snow. To us that makes it more attractive than some of the other larger resorts like Hakuba and Shiga Kogen where the snow can be a little less reliable. Snow reliability is important for international skiers because visitors make a significant investment to come so the security of snow is very important. Amongst the locals in the know, Madarao & Tangram has without question the best lift accessed side country tree skiing of any resort in Japan and a very liberal policy towards riding the trees. Within the ski area boundary there are 13 designated tree skiing locations.


Visitation is increasing year on year

From 2016 there has been a startling increase in the number of visitors to Madarao, the inbound room capacity (rooms that are targeted to foreigners) has been doubling each year and from our own numbers, we can confirm that occupancy is also rising year on year. If you look at booking sites like Booking.com you will see that most of the available rooms will be sold before the season starts.


Prices are already on the rise

Madarao is just being discovered and starting to rise in value as a significant proportion of the property has been purchased by international investors. This means there is a lot less risk because the market has already been established and capital is being invested into renovations, restaurants, bars and ski rental equipment. Properties in Madarao represent good value when you factor in occupancy and yields.


There is no traditional village

Whilst you might think that owning a property in a traditional village would is a cool idea, local villages often have a very different view of development that foreigners and it can often cause friction or problems that will stop you from developing your property. I’ve heard of stories of people buying blocks of land and then being told by the village council that they cannot build on it. Madarao, having been originally built as a ski resort, has no traditional village rules, which means it is relatively easy to build and develop as you wish as long as you stay within Japanese building regulations.


Location

Madarao is blessed when it comes to the location for two reasons. Firstly, because it is only 15 minutes from the Iiyama Shinkansen Station, compared to up to 2 hours for other resorts in the region like Hakuba or Myoko which require long bus rides or bus and train changes.  Secondly, because it is geographically central between about seven resorts, including Nozawa Onsen, Myoko Kogen, Shiga Kogen, Ryuoo, XJam, Togari and others. This means that visitors can stay at Madarao and do day trips to other resorts. Being centrally located means that guests will also stay longer increasing their lifetime value to the business.


More Opportunity

Ironically, the extended downturn in the ski industry and Madarao means that a lot of the older buildings have already been knocked down, so there is vacant land in great locations. This land is now being purchased, with the new owners intending to build all manner of hotels and apartments. You don’t see a lot of new construction in Japanese ski resorts, but I believe over the next 2–3 years we could see substantial new development in Madarao which will take the resort to a whole new level further increasing the capital value of established properties.


Final words…

When buying ski property in Japan you need to exercise some caution, not everything that is cheap can be turned to gold…there is a plethora of abandoned, shut down, run down and falling down property. Renovation costs are escalating and you could expect to spend upwards of $500k fully renovating a lodge to operational standard. You'll also find that renovating in Japan will take a lot of time, money, effort and patience because everything needs to be translated so its not for the faint hearted.

Aya Lodge in Madarao is quite literally a "Unicorn"... there is nothing like this on the market being offered as a full turnkey business with a quality building on premium located land and stylishly renovated to meet international guest expectations.
About Us
Aya Lodge Madarao KK is privately owned and operated.  We are Australian nationals, however, live and work in Japan part-time and have extensive expertise in property.

We own & operate numerous lodges & hotels in Myoko Kogen & Madarao Mountain Resort and are committed to consciously aware & sustainable development that preserves local traditions and culture.

As the purchaser of 'Aya Lodge Madarao', we can offer you the following services:

   > Our rolodex of expert advisors
   > Construction Management services - meaning, we can assist you in coordinating your renovations & styling with local contractors 
   > Operational advice based on our 'hands-on' experience and subject to your preferred business model.
   > Local knowledge - we will assist you in becoming a thoughtful and commercially conscious member of the local Japanese community.
Email enquires to drewjinnes@gmail.com
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