Tsuruya Hotel, a landmark institution in the hot spring town of Atami, Shizuoka Prefecture, will close on Nov. 1, sources close to the hotel said Tuesday.
Known for its scenic position on the Pacific coast, the hotel has drawn dignitaries such as Shigeru Yoshida, a five-time prime minister between 1946 and 1954 and signatory of the San Francisco Peace Treaty, as well as the late Prime Minister Takeo Fukuda, who held the position from 1976 to 1978.
News of the closure will likely take Japan's hotel industry by surprise, officials said. The hotel had long been called the "Symbol of Atami."
Founded in 1934 as Tsuruya Ryokan, the inn prospered and attracted dignitaries from both political and business circles. It adopted its current name in 1967.c
In 1984, the hotel was acquired by an Aomori Prefecture entrepreneur whose fortunes subsequently declined.
The entrepreneur borrowed tens of billions of yen in the heyday of the bubble economy of rocketing land and securities prices by using the hotel as collateral.
The entrepreneur defaulted after the bubble burst, forcing the hotel to be auctioned. It was bought by a foreign real estate company in June.
The entrepreneur was also arrested on suspicion of embezzling reserves from a scholarship program set up by the inn's founding family.