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"Until 2011, it held the record for being the oldest hotel in the world."

I wondered what happened in 2011

This confused me, too. The record officials must have discovered an older hotel?

Nishiyama Onsen Keiunkan hotel somehow proved they were older. (Founded in 705, run by the same family for 52 generations.)

Tofugu has a nice article about the centuries old establishments in Japan: http://www.tofugu.com/2014/10/28/over-a-thousand-years-of-se...

Yep. They discovered another one in Japan that was founded circa 700 AD.