The Sanyo Shimbun (Japanese) reports that in early April, a 45 year old Chinese man needed accomodation in Kurashiki. The first hotel he went to had no vacancies but an employee asked around and found that a nearby business hotel had rooms available. When the hotel learned that the customer was not Japanese, they told the employee that they could not accept foreigners ("外国人客には十分な対応ができない"). The Chinese man went around to the hotel but the staff did not change their stance. He was able to find alternative accomodation. Later that month, the man asked an association of Chinese businessmen in the city to approach officials to seek an apology. This was forthcoming and the city began an investigation into a breach of the laws governing the hotel business. An executive at the business hotel explained that the reason for their refusal was that their staff might have problems communicating ("言葉などの面で対応に限界があるため、断った). The Chinese man rejected that explanation and said that he was only told that he was not welcome because he was a foreigner which he found humiliating. Further investigation by the Kurashiki Tourist Convention Bureau revealed that other establishments in the city likely had similar policies and so they have sent letters objecting to the practice in order to prevent a similar occurrence.
Debito has identified the offender as Business Hotel Apointo