Sakishima Cosmo Tower Hotel Development Declares Bankruptcy

The Sakishima Cosmo Tower Hotel development received a bankruptcy commencement decision from the Osaka District Court on December 24.

According to Tokyo Shoko Research, the company was a developer and operator of the Sakishima Cosmo Tower Hotel, with the related company Sakishima Cosmo Tower Hotel managing operations. Research by Teikoku Databank shows that the total debt amounted to approximately 7.2 billion yen.

The Sakishima Cosmo Tower Hotel was located from the 7th to 17th floors of the Osaka Prefecture Sakishima Government Building. The hotel’s operations were handled by Sakishima Cosmo Tower Hotel development, a joint investment by Ricoh Japan and Nishitsuji Construction, who responded to a call for bids conducted in 2017. The monthly rent was 31,956,750 yen, with a cost per tsubo (unit of area) of 6,300 yen. They hoped to occupy the space for 20 years, and the hotel had been gradually opening since January 2019.

A civil lawsuit filed by Osaka Prefecture, demanding payment of unpaid rent, resulted in a victory for the prefecture, and with the notification by October 31 to vacate the building, they departed on the same day. President Yoshihiro Homma and others were arrested in August on suspicion of concealing assets.