What were the two notable hotel openings in Tokyo in Q3? | Real Estate Asia
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What were the two notable hotel openings in Tokyo in Q3?

The new hotels brought supply to over 22,000 keys as of September.

In the third quarter of 2023, JLL revealed in a report that two hotels opened in Tokyo, among which was the 272-key Hotel Indigo Tokyo Shibuya in August. A boutique hotel, TRUNK (HOTEL) YOYOGI PARK, opened in September in Shibuya’s trendy Tomigaya neighbourhood, adding 25 keys to the market. 

This brought the supply of upscale and above hotels to 22,342 keys at the end of September 2023.

Here’s more from JLL:

Three other notable hotels are anticipated to enter the market by the end of the year, namely, Tokyo Edition Ginza, Hotel Toranomon Hills, and Janu Tokyo. These projects should bring 413 new rooms to Tokyo.

Hotel RevPAR improves, supported by higher ADR

Tokyo registered a continued increase in trading performance in all hotel segments in the first nine months of the year. The rising number of tourists in the city has led to a significant improvement in average daily rate (ADR) in particular.

Following the trend in the first half of the year, hotels in Tokyo have registered high levels of ADR in the third quarter of 2023 to offset a lagging occupancy rate due to airlift challenges. As a result, revenue per available room (RevPAR) continued to exceed pre-pandemic levels.

Outlook: Occupancy anticipated to catch up by the end of the year

The strong travel momentum witnessed in Tokyo since January 2023 is anticipated to continue in the middle term. As a result, occupancy in Tokyo hotels should pick up along with the increasing number of international tourists complementing a strong domestic demand base, while ADR is expected to rise slightly and then stabilise.

The gradual return of tourist groups should benefit the entry-level segments, while the anticipated increase in leisure tourists due to the upcoming year-end festivities should support the upscale and above segments.


Note: Tokyo Hotels refers to Tokyo's luxury and upper upscale hotel market.


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