ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Economy

Hotels to add 60,000 rooms in Japan by 2020

Business lodgings drive growth; shortage for Olympics tourists looms

Japan is seeing a surge in foreign arrivals in the runup to the 2020 Tokyo Olympics.

TOKYO -- Japan appears headed for an increase of over 60,000 hotel rooms by 2020 as business lodgings and foreign chains launch new locations, eyeing an influx of visitors to the country that should peak during the Tokyo Olympics.

The pace of hotel room growth is double that of the previous four years. Total investment will reach roughly 1 trillion yen ($8.52 billion), according to an estimate based on Mizuho Research Institute data.

The nation offered about 850,000 hotel rooms in March 2016, the Ministry of Health, Labor and Welfare said. An additional 62,500 rooms will be supplied from 2017 through around 2020, according to Ohta Publications, a Japanese hotel data company.

The most prominent high-end hotel launches involve foreign chains. U.S.-based Hyatt Hotels will open a new Park Hyatt in Kyoto and Hokkaido in 2019. The company will double its locations in Japan to around 20, including brands other than the Park Hyatt.

U.S.-based Marriott International, together with Tobu Railway, will open a Ritz-Carlton in the Tochigi Prefecture city of Nikko in 2020.

But the rising room numbers are being underpinned by new business hotels. Around 1,500 rooms will open in Kyoritsu Maintenance's eight new Dormy Inn locations by March 2018. Fujita Kanko, which operates the Washington Hotel chain, plans to launch around five locations by 2019, offering 1,000 rooms.

Yet hotel shortages likely will remain an issue leading up to the Summer Olympics. If tourist numbers reach 40 million in 2020 as the Japanese government hopes, hotel demand will soar by 35,000 rooms in Tokyo alone, resulting in a shortage of over 10,000 rooms, projections by major real estate services company CBRE show.

(Nikkei)

Get unique insights on Asia, the most dynamic market in the world.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media