Kyoto’s Hidden Transformation: How a Former Red-Light District Became One of the City’s Most Creative Neighbourhoods
Most visitors walking through Kyoto’s Kikuhama area today would never guess the neighbourhood’s unusual past.
Located near the Kamogawa River just south of Gojo Street, the area is now known for its renovated machiya townhouses, stylish cafés, boutique accommodations, and relaxed local atmosphere. But behind the quiet streets lies a history connected to Kyoto’s former entertainment districts, the yakuza, and even the early origins of Nintendo.
Seika construction in progress
As Shiki Properties continues work on our upcoming machiya Seika, we’ve been reflecting on how dramatically this part of Kyoto has transformed over the past century, and why it’s quickly becoming one of the city’s most interesting areas to stay.
The Forgotten History of Kyoto’s Gojo Paradise
An example of prior teahouse now used as a guesthouse
Before its recent redevelopment, Kikuhama was home to Gojo Paradise (五条楽園), one of Kyoto’s best-known entertainment districts. The area originally developed during the Edo period and became famous for its traditional tea houses, geisha culture, and nightlife. At its peak in the 1960s, the district reportedly contained around 200 tea houses and 20 geisha houses, making it one of Kyoto’s busiest after-dark destinations.
Although Japan introduced the Anti-Prostitution Law in 1958, many businesses in the area continued operating for decades through legal loopholes and changing business structures. Over time, however, shifts in lifestyle, westernisation, and new forms of entertainment caused the district to slowly decline. By the early 2000s, only a handful of businesses remained.
The Surprising Connection Between Nintendo and Kyoto’s Underworld
Nintendo’s former HQ is now a hotel
One of the most fascinating parts of the neighbourhood’s history is its connection to Nintendo. Long before becoming one of the world’s biggest gaming companies, Nintendo began in Kyoto as a hanafuda and karuta playing card manufacturer. During the early 20th century, gambling establishments throughout Kyoto created strong demand for these cards, especially during periods when western-style playing cards faced restrictions. As a result, members of Kyoto’s underworld and gambling circles became some of Nintendo’s early customers.
Hanafuda cards
The company later experimented with several businesses during Japan’s postwar economic boom, including taxis, food ventures, and reportedly even plans related to the love hotel industry. However, Nintendo eventually shifted its focus toward toys and electronic entertainment, completely reinventing itself into the global family-friendly brand recognised today. By the late 1960s, the company had largely distanced itself from Kyoto’s nightlife districts and expanded toward Tokyo and international markets.
From Yakuza Headquarters to Creative Hub
Yakuza HQ is now a special place for artists
For many years, the neighbourhood remained closely associated with the Kyoto-based yakuza group Aizukotetsu-kai (会津小鉄会), whose headquarters stood nearby. Even as cafés, guesthouses, and hotels began opening in the area during the 2010s, many locals still viewed the district as dangerous because of its lingering reputation. That image finally began to change in 2017, when Kyoto City ordered the yakuza headquarters to cease operations. The building was demolished in 2021, symbolising a major turning point in the neighbourhood’s redevelopment.
In a twist that surprised many locals, the site was later purchased by Yamauchi No.10 (YN10), a foundation established by Nintendo’s founding family. Today, YN10 is leading several long-term redevelopment projects in the area, including SOHA and the Takase River Project, with the goal of transforming the neighbourhood into a creative district for artists, designers, entrepreneurs, and local businesses. The riverside areas are also being revitalised, creating new public spaces where locals and visitors can once again enjoy the atmosphere along the Takase River and Kamogawa River.
Why Kikuhama Is Becoming One of Kyoto’s Most Interesting Areas to Stay
Ikehan -a popular tea house next to the river
Walking through Kikuhama today feels very different from its past reputation. The streets are lined with independent cafés, renovated machiya, small restaurants, and creative spaces. Young Kyoto residents are increasingly moving into the area, while visitors are discovering a quieter alternative to more crowded tourist districts like Gion or Higashiyama.
At the same time, traces of the neighbourhood’s history remain visible through its architecture. Some former tea houses still feature traditional tiled exteriors, stained glass windows, and distinctive karahafu-style roofs, giving the area a unique atmosphere that blends old Kyoto with modern redevelopment. This balance between preservation and renewal is part of what makes the neighbourhood so compelling today.
Discovering Kyoto Beyond the Tourist Areas
As Shiki Properties prepares for the completion of our upcoming machiya Seika, we’re also thinking about how to preserve and reflect the character of the surrounding area through design. Our construction team is currently incorporating subtle elements inspired by the neighbourhood’s architectural history into the property’s interiors, helping guests experience a deeper connection to this evolving part of Kyoto.
Incorporating Hanafuda cards into Seika’s design
Located just moments from the Kamogawa River in the same area, Kumei is one of Shiki Properties’ machiya accommodations in the area. Designed for groups of up to six guests, the property combines traditional Kyoto architecture with modern comfort, making it ideal for families, small groups, or longer stays.
One of Kumei’s biggest attractions is its location. Guests can easily walk along the Kamogawa River in the mornings or evenings, explore nearby cafés and restaurants, or reach central Kyoto areas such as Gion, Kawaramachi, and Kiyomizu-dera within a short distance. Despite being so close to the city centre, the neighbourhood still retains a calm residential atmosphere that many visitors are increasingly seeking out.
Kikuhama’s story is ultimately one of reinvention: a neighbourhood once associated with gambling, nightlife, and organised crime that is gradually becoming one of Kyoto’s most creative and culturally fascinating districts.