More Than a Budget Stay: The Controversy Behind Japan’s APA Hotels

If you’ve spent time in Japan, you’ve probably spotted an APA Hotel at some point (or a dozen). They’re everywhere, popping up on nearly every city block, almost as common as the country’s iconic combini chains. Fast-growing and unmistakable, APA has become a go-to for budget-conscious travelers.

Most know APA for its low prices, convenient locations, and simple, no-frills service. For others, it’s just the hotel you keep bumping into. But far fewer know the story behind its rapid rise or the controversial legacy of the family behind it.

When it comes to APA, you can’t separate the man from his creation. The founder’s extreme political views and aggressive business tactics have significantly shaped the hotel’s image, adding a complex new layer to its identity and branding.

From roots to reach

What’s now one of Japan’s most omnipresent hotel chains began as a humble real estate venture. In 1971, Motoya Toshio founded Shinkin Kaihatsu Co., Ltd., a custom home sales company. Thirteen years later, he opened the first APA Hotel in Kanazawa.

By the late 1980s, APA had already grown into a network of businesses fueling the brand’s expanding reach. In 1994, Motoya’s wife, Fumiko, took the reins as president of the hotel arm, solidifying what would become a tightly held family empire.

Since then, APA’s rise has been anything but slow. In just over 40 years, it grew from a single hotel to more than 90 in the Tokyo metropolitan area alone. Back in 2009, that number stood at just six. Nikkei once likened its growth to “bamboo shoots after the rain,” and in cities like Tokyo, that image feels literal. Stroll a few blocks in Shinjuku and you’re likely to pass one APA Hotel, then another, and another.

An aggressive real estate strategy

But while many see this as a success story, it’s worth asking: what’s the real price of this rapid growth?

APA’s business model hinges on an aggressive real estate strategy that thrived on economic instability. When the 2008 global financial crisis forced most companies to pull back, APA stepped in. They snapped up leftover plots of land in prime locations, many too narrow or oddly shaped for most developers to touch. These “scraps” became the very foundation of the hotel empire.

But this wasn’t just a bold move: it was calculated. APA targeted land near train stations and entertainment districts to maximize visibility and foot traffic. And instead of pacing development to control costs, they built fast and dense, often saturating entire neighborhoods.

In short, APA didn’t just enter markets; it took them over. Their overwhelming presence in any area gives travelers the impression that APA is always available and within reach.

Financially, APA has been just as aggressive. The company claims it has never posted a loss. In 2017, group sales hit 110.5 billion yen ($784M), with the hotel business accounting for 78.7 billion yen of that. By 2024, APA had doubled those figures, reaching 220 billion yen in sales and 70 billion yen in profit.

But behind these impressive numbers lies a concentration of power that raises questions. Unlike competitors who lease land and manage hotels, APA owns most of its properties, leveraging ultra-low interest rates. The company is privately held, with all shares owned by the Motoya family. This setup certainly enables agile investment, while arguably also limiting external oversight or accountability. Simply put, this empire answers only to itself.

At its core, APA’s growth isn’t just about smart business; it’s about a tough, sometimes ruthless strategy. And behind it all, it’s the Motoya family pulling the strings.

Room for controversy

There’s more to APA Hotels than rapid expansion and bold branding. The family-run empire has also made headlines for reasons far beyond the hospitality business.

In 2017, a video uploaded by an American traveler on the Chinese social media platform Weibo brought APA into the spotlight well beyond national borders. The clip alleged that rooms across the hotel chain featured a book denying the Nanjing Massacre, widely documented as one of the most brutal episodes of Japan’s wartime past.

The video quickly went viral, reaching over 77 million views in just two days. It charged APA with pushing a political agenda while taking money from Chinese tourists, unaware of the content in their rooms. Chinese users flooded comment sections, calling it a “declaration of war on historical truth,” and accusing APA of hypocrisy. International coverage soon followed, with media in Taiwan, Hong Kong, and the United States picking up the story.

The book at the center of the controversy, Theoretical Modern History II: The Real History of Japan, was authored by none other than APA’s founder, Motoya Toshio. Among its central claims is that the Nanjing Massacre was fabricated, echoing nationalist revisionists’ views common in certain political circles, especially within Japan’s ruling Liberal Democratic Party (LDP).

Faced with mounting backlash, APA issued a public statement. The company stood by the book and its placement in guest rooms, citing freedom of expression and arguing that historical perspectives differ from country to country. The books stayed.

APA’s leadership showed no signs of retreat. CEO Motoya Fumiko dismissed the controversy entirely. “There has been no impact,” she said. “Occupancy was strong in both January and February, achieving record-high results.” She also added that Chinese travelers made up just 5% of their guest base, suggesting the fallout was minimal. In other words, not a big loss.

The headlines eventually faded, and APA’s business continued as usual. But the episode left more than a momentary PR crisis. It now offers a deeper look into the DNA of the APA empire, where personal beliefs and corporate identity are tightly interconnected. And in APA’s case, the message isn’t just in the branding. It’s right there, printed and placed in the nightstand drawer.

Check in, tune in

You’ll see APA Hotels just about everywhere in Japan: on busy street corners, next to train stations, rising high in city skylines. With over 900 properties and more than 129,000 rooms nationwide, it’s nearly impossible to visit Japan without coming across that bold orange-and-black logo. Yet its story is far more nuanced than its surface suggests.

This isn’t a call to boycott, nor a judgment on anyone’s travel choices. APA’s business model—affordable prices, compact rooms, and unmatched convenience—clearly works, especially for budget travelers and businesspeople on the go. Still, even small choices, like where to stay, can take on a new meaning when you know the full picture. And for some, the story behind the name matters.

APA has earned its place in Japan’s urban landscape. But when a brand is so ever-present, there’s value in questioning what’s behind the logo. That doesn’t mean you shouldn’t book a night. It simply means making that choice with open eyes.

Because sometimes, a hotel stay is just a hotel stay. And sometimes, it comes with more than just fresh sheets.

Sources

アパホテル､驚異の利益率33％を稼ぐ仕掛け　東洋経済

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