Ultraluxury Resort Boom in Japan
Skift Take
- Asian ultraluxury resort companies are expanding into Japan to cater to wealthy overseas travelers and take advantage of the weak yen, with Soneva Holdings planning to open resorts in Japan by 2027 and investing 100 billion yen in new properties.
- Foreign investment in Japanese hotels increased significantly in recent years, with 2022 seeing a sixfold increase compared to the previous year, and an expected total of 128.5 billion yen in investments in the first six months of the current year.
- International hotel brands like InterContinental, Wyndham, Marriott, Hyatt, and Accor are actively expanding their presence in various regions, including India, Vietnam, China, Thailand, and Australia, offering a diverse range of accommodations and amenities.
Nikkei Asia published an article on how Asian ultraluxury resort companies are expanding into Japan to tap demand from wealthy overseas travelers and to take advantage of the weak yen. The article mentioned Soneva Holdings planning to open resorts in Japan as early as 2027, already signing a contract to purchase a remote island in Okinawa prefecture with plans to acquire land in Myoko, Niigata prefecture, in central Japan. The article said Soneva sees an opening in the market as there are few ultraluxury villa resorts that offer the privacy that wealthy customers prefer. The company is also interested in traditional Japanese inns. Soneva will invest 100 billion yen overall in the next five years to develop new properties. Jones Lang LaSalle said investment by foreign companies in hotels in Japan totaled 162.5 billion yen in 2022, up sixfold from the year before and 90% of 2019 levels. They expect this year to beat that number with investments reaching 128.5 billion yen in the first six months. Japan’s Oraga Research Institute expects 17 foreign luxury hotels with 3,765 rooms in total to open in Japan this year. Nomura Research Institute Thailand said projects in Japan are seen as being cheaper than in other countries, including both land and buildings and infrastructure like water, electricity, and transportation. Asian capital is also entering the market in partnership with Japanese companies with the article referencing Rosewood Hotels & Resorts opening a resort on the Okinawan island of Miyakojima next year, signing a contract t
