Shangri-La is a soapland located in Kamurocho. It is commonly referred to as a "spa" to avoid direct reference to its actual existence as a brothel.
Akemi, Shinji Tanaka's girlfriend, works at the soapland. After Shinji's death, Kazuma Kiryu paid her a visit to ask some questions. While he's present, however, the building is swarmed with yakuza goons, and when Kiryu tries to escape, Goro Majima crashes a dump truck through the front doors.
The damage Majima inflicts to the building cascades as he and Kiryu fight amidst the rubble.
Yakuza 2/Yakuza Kiwami 2 Edit
Shangri-La never recovered from the damage inflicted by Majima's reckless assault, and over the following years fell into total disrepair. Big Lo uses the remains as a hideout.