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Forget European or American Powers. The Oldest Company in the World in Continuous Activity Managed by the Same Family Is a Japanese Hotel Founded in 705 A.D., a Legacy of 52 Generations.
When thinking about the oldest company in the world in operation, imagination typically travels to Europe or America. However, the historical reality points to Japan, home to a hotel founded in 705 A.D. and managed by the same family for an incredible 52 generations: Nishiyama Onsen Keiunkan.
The search for the oldest company in the world in operation challenges common perceptions. The answer is not in the West, but in Japan, a nation with an unparalleled concentration of secular businesses known as “shinise.” The highlight is Nishiyama Onsen Keiunkan, a hotel with over 1,300 years in the same family.
Nishiyama Onsen Keiunkan: More Than 1300 Years of Constant Hospitality in the Same Family
Founded in 705 A.D. by Fujiwara Mahito, son of an advisor to Emperor Tenji, the Nishiyama Onsen Keiunkan is located near hot springs (onsen) in the ancient province of Kai (now Yamanashi Prefecture). Its name derives from the Keiun era at the time of its founding. Most notable is its uninterrupted family management for 52 generations, a pillar of its fame and recognition.
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Offering the traditional experience of a Japanese ryokan (tatami rooms, futons, kaiseki cuisine) and omotenashi hospitality, the Keiunkan has welcomed everyone from commoners to shoguns like Tokugawa Ieyasu. It is officially recognized by Guinness World Records as the oldest hotel in the world. Currently, it has 35-37 rooms and has undergone modernizations, such as the 1997 renovation, while maintaining its essence.
Kongo Gumi: The Temple Builder of Fourteen Centuries and Its Notable, Yet Different, History of Longevity
Kongo Gumi, a temple construction company, has an even older foundation date: 578 A.D. It was established when Prince Shōtoku Taishi invited three skilled carpenters from Baekje (Korea) to build Japan’s first Buddhist temple, Shitennō-ji. One of them was Shigemitsu Kongō, the founder of the company.
For more than fourteen centuries and 40 generations of the Kongō family, the company specialized in constructing and repairing temples and shrines, using traditional techniques. However, due to financial difficulties resulting from real estate investments during the economic bubble of the 1980s, Kongo Gumi entered liquidation and was acquired by Takamatsu Construction Group in 2006. While it continues to operate as a subsidiary and preserve its craftsmanship, its trajectory of 1,428 years as an independent family business has ended.
Deciphering the Title of Oldest
To define the oldest company in the world in operation, it is crucial to distinguish. Kongo Gumi (578 A.D.) is older by foundation date and continues to operate as a subsidiary. However, if the criterion is continuous independent family ownership and management, Nishiyama Onsen Keiunkan (705 A.D.) emerges as the primary titleholder, with its uninterrupted 52 generations. This model of family management often prioritizes legacy and tradition.
Why Companies Like the Oldest Company in the World in Operation (Family) Thrive in Japan?
The high concentration of ancestral companies in Japan is no coincidence. Sociocultural factors such as deep respect for tradition and craftsmanship, emphasis on family lineage, and flexible succession practices (including the adoption of sons-in-law who take the family name to ensure continuity) are crucial. The concept of “ie” (traditional family system extended to business) and the focus on long-term relationships with customers and suppliers also contribute to this longevity.
Nishiyama Onsen Keiunkan, founded in 705 A.D. and operated by the same family for 52 generations, is an extraordinary example of resilience, being a strong contender for the title of oldest company in the world in operation under uninterrupted and independent family control. While Kongo Gumi is older by foundation and maintains its craft, Keiunkan’s independent family continuity is unique. These Japanese stories offer valuable lessons on sustainable business, adaptation, and the preservation of a legacy that spans millennia.
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