Oizumi Corporation's power-generation subsidiary is swapping solar panels for pillows. Kanagawa Denryoku, a consolidated subsidiary of the Tokyo Stock Exchange-listed machinery group, told the market on July 21 that its board had approved entry into the hotel business, with roughly ¥1.1bn earmarked for buying and renovating two small inns on Japan's Izu coast.
The subsidiary has built its business on solar power generation under Japan's feed-in-tariff system, but the disclosure says that model is running out of runway. Feed-in-tariff purchase prices have been falling, and the fixed-price contracts that guarantee utilities buy Kanagawa Denryoku's output are expiring in sequence, leaving medium-to-long-term profitability harder to sustain. Management says it is diversifying its revenue sources in response, betting on Japan's growing tourism and inbound-visitor demand instead of waiting out the decline.
The plan covers two properties, both pitched as quiet, small-scale retreats rather than conventional hotels: a 14-room inn in Atami and a 6-room annex property in nearby Ito, on the Izu Kogen side of the peninsula. Both keep room counts deliberately low to offer what the company describes as an unhurried, private stay away from crowds.
| Property | Location | Rooms |
|---|---|---|
| Atami inn | Atami, Shizuoka Prefecture | 14 |
| Ito inn | Ito, Shizuoka Prefecture (Izu Kogen area) | 6 |
Kanagawa Denryoku plans to start running the hotels itself from August 1, pending final arrangements. Oizumi says it is still working out how the move will affect its results for the year ending March 2027, and will update investors if its earnings forecast needs revising.