With inbound travelers to Japan rising, a shortage of accommodations in major cities has created a market opportunity for privately run small-scale inns. Hitomi Munakata explains why she started this model, the strengths of small-scale inns, and startup tips, including cost-saving measures such as buying used appliances, and why she pivoted from leasing to buying a home when landlords refused leases. She initially managed guest communications herself, but later outsourced cleaning, management and guest services to a trusted firm. Outsourcing can save time but depends on finding reliable local partners. The article notes that the sector is expanding across major regions and that Munakata has supported hundreds of operators through funding, M&A, and DX initiatives.