May 8, 2024

Villa Subscription Business Plans to Expand to 30 Locations Nationwide

In the subscription business model, customers pay a recurring fee to access a product or service. Publishers pioneered this model in the 17th century, and it is now widely used by businesses, websites, and pharmaceutical companies in partnership with governments.

Sanu (Tokyo), a unique provider of vacation home subscription services, has successfully raised 7 billion yen through loans from financial institutions and real estate investments. Sanu's innovative approach involves developing villas in Kansai, Kyushu, and Hokkaido, with a vision to double the current 30 hubs by 2025. This model promotes a dual-hub lifestyle, allowing customers to move between urban and rural areas with nature seamlessly.

From the latter half of 2024 to 2025, villas will be built on Awaji Island in Hyogo Prefecture, Amami Oshima Island in Kagoshima Prefecture, and Niseko in Hokkaido, among others. Against the backdrop of the development of transportation networks such as LCCs and the improvement of telecommunication infrastructure in rural areas, it is responding to the growing demand for subscriptions of 55,000 yen per month, mainly among people in their 30s and 40s who are raising children.

Photo from Sanu’s company website

Sanu is strategically positioning itself to become Japan's largest membership villa service by 2025, with a target of 30 hubs and 200 rooms (currently 15 hubs and 78 rooms). In addition to its successful subscription-based service, Sanu also focuses on expanding its customer base for the joint ownership service for vacation homes launched in February. This ambitious plan aims to double its overall membership to 6,000, up from the current level.

The 7 billion yen was raised through loans to Sanu by several reputable financial institutions, including Mizuho Bank and Resona Bank, real estate development loans, and equity warranted loans from SDF Capital (Shinagawa, Tokyo), a startup debt fund operator. As Fukushima, Sanu's CEO, stated, the funds will be primarily used to expand Sanu's hubs across the country, enhancing the value of customer experience.