You may be familiar with the "akiya" phenomenon, where empty houses in the Japanese countryside are sold for a song. The same applies not just to residential homes, but to other buildings as well, and their price tag is very low for the same reason: the property has serious issues and/or has been vacant for years, and will require far more than the initial investment to make habitable.
Here's a fascinating blog post by someone who went poking around the ruins of one hot spring town (Kinugawa) that went through a particularly dramatic boom and bust cycle: https://spikejapan.wordpress.com/2010/06/14/983/
This particular hotel at least appears to have been open until fairly recently, but Google reviews describe the "Showa-era" furnishings (read: 1980s at best), and it's on the fairly grim slate grey Kujukurihama beach 3.5 hours from Tokyo by train: https://maps.app.goo.gl/G53KWyCsmeUy8JyR9
Maybe not thriving but they were paying salaries and bills before they were bought. They were not in a bankrupt state.
I was thinking the same thing. In many parts of the world, even a failing / debt laden business would be worth much more than that.
Good location being the key here
I doubt a house the price of a new car qualifies as being in a good location.
Tokyo on the other hand… yeah I doubt you would see anything cheaper than couple million dollars there