The rental conference room market has been growing year by year, with demand further increasing due to work style reforms and the spread of remote work. During the COVID-19 pandemic, new needs emerged for use as examination venues and webinar studios.
This article introduces a rental conference room operation manual, covering the features of rental conference rooms and the merits and demerits for users. Those interested in entering the rental conference room market as a new real estate investment or side business are encouraged to use this as a reference.
What Are Rental Conference Rooms? What Kind of Service Are They?
Rental conference rooms are a service that provides spaces for meetings and discussions at an hourly rate. They come equipped with the necessary facilities, and users can book them for only the time they need.
In recent years, the range of uses has expanded, and they are now used for multiple purposes including recruitment exams, job fairs, in-house training, shareholder meetings, club activities, and seminars. There is also a growing number of cases where companies reducing their office space utilize rental conference rooms as temporary meeting spaces.
What Types of Rental Conference Rooms Are There? Classification by Purpose, Format, and Operator
Classification by Purpose
Rental conference rooms vary in capacity and facilities, so they are chosen according to the purpose. The main classifications are as follows.
- Conference Hall: Large-scale space. Tiered seating arrangement, ideal for shareholder meetings and international conferences
- Conference Room: Smaller than a hall, fully equipped with large screens and presentation facilities. Used for job fairs and similar events
- General Rental Conference Room: Similar to a typical office meeting room. Available in large, medium, and small sizes for multipurpose use
- Seminar Room: A space specialized for training. Layout changes may be possible
- Rental Room: Multipurpose space. Features vary, including rooms with kitchens or karaoke equipment
Classification by Format
Rental conference rooms are available in the following layout formats.
- Theater Style: All attendees face forward. Suitable for lectures and presentations
- School Style: The most common classroom-type layout. Ideal for lectures and examination venues
- Face-to-Face Style: Seating arranged facing each other across a table. Used for business negotiations and contract signings
- U-Shape Style: U-shaped arrangement allowing the facilitator to see all participants
- Hollow Square Style: Square arrangement with an open center. Suitable for important meetings with a large number of participants
- Reception Style: Free arrangement. Suitable for parties and social gatherings
- Horseshoe Style: Double U-shape format. Suitable for international conferences and symposiums
- Cluster Style: Arranged by groups. Suitable for group discussions
- Banquet Style: Multiple round table arrangement. Versatile for receptions and business occasions
Classification by Operator
Rental conference room operators are diverse.
- Hotels: Luxurious atmosphere with good locations. Can be used in combination with accommodation
- Specialized Rental Conference Room Operators: Well-equipped facilities and services at reasonable prices
- Real Estate Companies: Located in well-known buildings with abundant ancillary services
- General Corporations: Many companies that operate training businesses, with well-equipped training facilities
- Local Governments and Public Organizations: Low fees, but facilities may be limited
- Real Estate Investors: Individually operated, with a growing trend as a side business
What Are the Merits and Demerits of Rental Conference Rooms?
When starting a rental conference room operation, it is essential to understand the merits and demerits for users.
Merits
- Reduction in Rental Costs: Can be used only when needed, eliminating fixed costs for maintaining a conference room
- Choice of Size and Format Suited to the Purpose: Can select the optimal space according to the number of participants and intended use
- Flexible Location Selection: Can flexibly choose a location, such as a midpoint for all participants or near a train station
Demerits
- Frequent Use Increases Costs: May become expensive if meetings are held frequently
- Difficult to Accommodate Last-Minute Meetings: Since it is not a dedicated space, availability depends on reservation status
- A Site Visit May Be Necessary: For large groups or layout changes, a preliminary visit is recommended to prevent issues
- Travel Required: Travel from the workplace is necessary
- Special Equipment Must Be Brought: Equipment beyond the basic facilities must be provided by the user
Why Did Rental Conference Rooms Expand?
The rental conference room market had been expanding even before the COVID-19 pandemic, driven by multiple factors.
- Demand as a Real Estate Investment: Reasonable initial costs, also attracting attention as a side business for salaried workers
- Proliferation of Portal Sites: Sites such as Space Market and Instabase made it easier to match landlords and tenants
- Spread of Smartphones: Enabled information gathering at any time, accelerating the matching of supply and demand
What Are the Merits and Demerits of Operating a Rental Conference Room?
The rental conference room business has grown into a market of approximately 1 trillion yen in total, including internet advertising costs.
Merits of Operation
The greatest merit is the potential for improved profitability compared to the traditional office rental business. Revenue from an unspecified number of users can be expected, and by subdividing the space for rental, revenue can double for the same floor area in some cases.
Demerits of Operation
- Constant Turnover: Continuously acquiring new users is always necessary
- Operational Costs: Effort is required for key handover and responding to inquiries
- Management Requirements: Cleaning and other management tasks are essential to maintain a clean environment
What Options Are Available for Operating a Rental Conference Room?
There are two main methods for operating a rental conference room.
Self-Operation
This method involves personally handling contracts and preparations, then registering on portal sites to attract customers. Everything from interior design and equipment procurement to staff recruitment is handled independently.
Outsourcing to an Operations Company
All aspects of opening the business (location selection, interior design, reservation page creation), staffing, reservation management, cleaning, and trouble-shooting can be handled on your behalf. Fee structures generally fall into three types: fixed rent, fixed compensation, and revenue-linked.
How Do You Start Operating a Rental Conference Room? 6 Steps
- Market Research: Check prevailing usage fees and equipment in the area, and identify points of differentiation
- Setting Usage Fees: Near train stations in urban areas, the guideline is 10,000–20,000 yen per hour for 50-person capacity, and 50,000–100,000 yen per hour for 200-person capacity
- Creating Terms of Use: Clearly state business hours, fees, reservation methods, cancellation policies, liability for damages, etc.
- Purchasing Equipment: Prepare chairs, tables, projectors, screens, microphone sets, etc.
- Photography: Take photos for portal site listings to differentiate from competitors
- Listing on Portal Sites: Utilize Space Market, Instabase, Kaigishitsu.com, etc.
Example of Initial Investment and Revenue Structure
| Item | Details |
|---|---|
| Location | Within Osaka City, 5-minute walk from the nearest station |
| Floor Area / Capacity | 85 sqm / max. 60 people |
| Initial Investment | Approx. 300,000 yen (desks, chairs, projector, etc.) |
| Regular Rent | Approx. 200,000 yen/month |
| Portal Site Fees | Approx. 100,000 yen/month |
| Cleaning Costs | Approx. 20,000 yen/month |
| Peak Monthly Revenue | Approx. 500,000 yen/month |
Summary
The rental conference room market is expanding, and with the proliferation of portal sites and operations management companies, it has become a business that even beginners can start with ease. In today's era of an active sharing economy, it is also attracting attention as a form of real estate investment. Consider the optimal rental conference room setup by taking into account initial investment costs and rental space conditions.
Frequently Asked Questions (FAQ)
What is the typical price range for rental conference rooms?
Near train stations in urban areas, the guideline is 10,000–20,000 yen per hour for 50-person capacity, and 50,000–100,000 yen per hour for 200-person capacity. Prices vary depending on location and facilities.
How much does it cost to start operating a rental conference room?
Approximately 300,000 yen is a rough guideline for equipment costs such as desks, chairs, and projectors. Property rent and interior renovation costs are required separately.
What methods are available for attracting customers to a rental conference room?
Listing on portal sites such as Space Market and Instabase is effective. While usage fees are approximately 30–35%, they handle customer acquisition and payment collection all in one.
What is the difference between a rental conference room and property management?
A rental conference room is a business that rents out space by the hour, while property management involves renting out residences or offices under long-term contracts. Rental conference rooms target an unspecified number of users.
