◆ Introduction and Journey to Hakone.
◆ Features of Rex Club Fuji Hakone.
◆ REX Club Fuji-Hakone Hotel Property Pictures and Overview with price list.
◆ Q & A
Q) What is a sharing economy?
A) It is a modern transaction practice, an economic activity in which goods and rights are shared by many people and used when it is needed.
Uber and Grab are common sharing economy companies.
Q) What is a sharing resort?
A) It is a resort or villa which is shared by several people to reduce maintenance and construction costs,
and each share owner schedules the use of the resort or villa as needed.
Q) How do Rex sharing hotels distinguish themselves from traditional timeshares?
A) Rex distinguishes itself by offering additional benefits through a point exchange system and point evaluation system,
which are not typically found in general timeshares and can be used beyond Rex hotels,
allowing shared owners to redeem some or all of their staying rights (6 nights per share) for cash,
or exchange them for travel products/services through partner travel agencies.
The system offers remarkable versatility, facilitating the exchange for numerous services and accommodations through its network of affiliated travel agencies.
Another feature is that it is easy to purchase, with purchase prices starting at less than 1 million yen (approximately 7,000USD),
and annual membership fees and facility maintenace fund combined starting at approximately 40,000 yen (approximately 300USD) per year.
Q) Why is Rex's annual fee lower than existing timeshares?
A) Until now, timeshare facilities were intended for members' personal use, so all maintenance costs had to be shouldered only by the members.
However, in the case of Rex, half of the facility ownership is held by the hotel management company, and the hotel business is managed in the same facility,
so the financial obligation can be shared between the participating members and the hotel operator.
This is a hybrid shared hotel system, which minimizes maintenance costs for both the hotel and the members.
Q) How are accommodations evaluated?
A) The price per night is usually determined by the hotel or private accommodation operator's expecting price.
Even modest establishments may list substantially higher rates for a single night.
However, if the price is set higher than the actual room variants, reservations will decrease and occupancy rates will drop.
The true potential of a facility can be generally determined by its room rate and occupancy rate (determined by overall popularity).
Season and regional changes were also factored into this determination.
Q) What should I do if I am unable to travel or stay at the room I reserved through Rex on the day of my stay?
A) If you have already made a reservation,
you will be charged a penalty fee (equivalent to the room charge for the day) or staying points will be reduced for that day if you are unable to stay.
In that case, you can use Rex's Accommodation Right Trading Market to sell them to a registered third party (other registered members, Rex hotel operators,
travel agencies with a permit, etc.).
Funds earned from the sale are paid once a year, closing at the end of the fiscal year, and paid by the end of the following month.
Q) How can I use Hotel Exchange?
A) Travel agents registered in the market have a large number of hotel reservations with their own handling accounts.
They can exchange their reservations for Rex hotel reservations at the nightly price quoted in the Rex rating system.
If there are any fractions in the exchange, the parties involved are responsible for settling them.
The conventional timeshare exchanges are done through exchange organizations such as RCI in the U.S.,
but this system has a few issues: it does not allow exchanges between non-participating companies, and it does not allow for the evaluation of a single night,
making it difficult to conclude exchanges when there is a difference in the room variants.
Rex allows for the evaluation of the variant of each room, making it possible to exchange accommodation rights at travel agency, which was difficult in the past.
Q) How long will this project continue?
A) Generally speaking, a major cause of hotel mismanagement is the aging of the facilities.
In many cases, the hotel is unable to pay for renovations because of a decrease in customers, a decrease in revenue per guest,
and a decrease in profits.
Numerous hotels have faced operational pauses as a consequence of this situation.
In order to prevent any loss of members' assets caused by such depreciation, Rex will accumulate a facility maintenance fund for repair and maintenance.
With many members contributing, this strategy ensures a financially sustainable way to secure future maintenance needs.
This is an efficient way to protect each members' assets.
Q) How is the hotel's land lease agreement structured?
Is there a possibility of a rate increase when renewing the lease?
A) The hotel has two lease agreements with the municipality: one for 15 years and another for 20 years.
The hotel is located on a portion of a large plot of land, approximately 20 hectares in size. There is no renewal fee when the lease is renewed.
While it is not impossible for the lease rates to increase in the future due to inflation,
it is generally uncommon for land lease rates to rise significantly in Japan.
There is no renewal fee at the time of lease renewal.
Q) Can you tell me about the usage period for the timeshare?
A) When you purchase a timeshare, your usage rights are valid indefinitely, as long as the building remains intact.
As long as proper maintenance is conducted and the building continues to exist, members retain permanent rights to use their timeshare.
Q) Can you elaborate on the processes involved in the sale and inheritance of shared assets?
A) The purchase of real estate-included memberships tends to result in fewer problems, such as selling challenges even at reduced prices,
compared with other shared assets.
The decrease in value of timeshare memberships from the original price is largely due to the high ongoing fees and the fact that the right to stay is forfeited
if not used. At Rex, the premise is that maintenance can be sustained with very low membership fees due to the hybrid share hotel model,
and even if the facility is not used, it can be redeemed for cash making it easier to sell at a high price.
After the shares have been sold, plans are in place to create a secondary market. Additionally,
inheritance procedures can be carried out in the same way as with regular real estate (condominiums, houses, land).
Q) When should I make a reservation at the hotel?
A) You can make a reservation at three main times.
First, with "Advance Reservation," bookings for the year are accepted three months before the start of the fiscal year until the day before the fiscal year.
Next, with "Mid-Term Reservation," the year is divided into six periods, each lasting two months.
Reservations can be made starting one month before each period begins, up until two weeks prior to the day of use.
Finally, 'Last-Minute Reservations' are typically available from two weeks before the date of use until the day itself,
allowing bookings in case of cancellations or other openings.
Example of Mid-term Reservation:
If a member wants to make a mid-term reservation for June 15th, it falls within the period of "May 1st to June 30th." Reservations for this period will be accepted starting from April 1st, which is one month before the period begins (on May 1st).
Q) I heard that Rex Club Fuji Hakone has a hot spring. What kind of hot spring is it and what are the benefits?
A) It is a hot spring that comes from the natural source of Hakone-Toge hot spring.
It is expected to improve fatigue, neuralgia, muscle pain, arthritis, stiff shoulders, bruises, and skin allergies.
Q) Rex Club Fuji Hakone is the first facility, but are there any plans for a second or third facility?
A) Yes, we are currently looking for additional properties to take advantage of this unique patented model.
In the future, we plan to expand to other attractive locations across Japan. As we do so, the options for point exchange will continue to increase,
making our services even more appealing to all stakeholders.
Q) I heard that you have an early investor pricing advantage. What kind of discount is offered before renovations are completed?
A) We will be running an early investor pricing advantage for a limited term.
Under this offer, there is a restriction on use of the property for roughly a year and a half,
as the staying right is not issued until the renovation is completed, and for this reason,
the early investor pricing advantage is generally about 30% off the sales price and is quite lucrative compared to other timeshare properties in Japan.