Japan - February 2024

S P OT L I G H T
Savills ResearchHigh-End Tourism
in Japan

Retail sales in Beijing were up 4.4% year-on-year to RMB539.8 billion in 1H 2018

High-End Tourism in Japan

Promising growth prospects acrossmultiple high-end tourism areas
Summary• Japan’s tourism industry was
historically geared towards
domestic guests, and received
very few inbound tourists. As
such, the high-end segment has
generally been underdeveloped.
• Japan is currently experiencing
an inbound tourism boom, yetaverage spending per inboundtourist is still relatively meagre,
and has large room for further
growth.
•O saka’s IR development will
herald the birth of Japan’s casino
industry, and aims to competewith other major IR facilities
in the region and attract highspending visitors from booming
economies in Asia.

BACKGROUND
Until the 2000s, Japan was not on the radar asa global tourism hub. Entry into the country
for most foreign travellers was cumbersome,and prices were prohibitively expensive due tothe strong yen. Japan was not geared towards
the needs of international travellers, withscarce foreign-language support. Indeed, thetourism industry of the country used to focus
on its large domestic travel market, with littleemphasis on catering to foreign visitors. As
such, the high-end market did not grow to acomparable extent to those of other countries
such as Switzerland and France, with only a

TABLE 1: World Economic Forum Travel and Tourism Development Index, 2021

RANK

COUNTRYSCORE (OUT OF 7.0)

1

Japan

5.2

2

United States

5.2

3

Spain

5.2

4

France5.1

5Germany

5.1

6

Switzerland

5.0

7Australia

5.0

8

United Kingdom

5.0

9Singapore

5.0

10

Italy

4.9

• The ryokan segment has been
capturing the imagination ofboth domestic and inboundhigh-end visitors, with many
available opportunities.
• Japan is now globally recognised
as a ski destination. Visionary
players are deploying
significant amounts of capital
to redevelop ski resorts acrossthe country, integrating luxury
accommodation and services inorder to compete globally withother major high-end resorts.
• The luxury retail sector has beena major beneficiary of Japan’selevation as a global tourism hub.
The further development of theaforementioned high-end sectors
will undoubtedly contribute to
greater earnings in the high-end
retail segment in Japan.
• Japan’s medical and healthcare
expertise and infrastructure aresecond-to-none, but attract
relatively few international
visitors, which leaves room forsignificant growth.
• We anticipate continuous
expansion in the demand forhigh-end experiences globallyas income inequality progresses
in many economies, and Japan
is well-positioned to adeptly
capture much of this demand.

handful of upscale ryokan and resorts aimed
exclusively at wealthy Japanese nationals.
However, a few decades later, Japan claimed
the top spot in the World Economic Forum’s
Travel and Tourism Development Index for2021 (Table 1), despite borders being firmly
closed during the pandemic, demonstrating
the significant amount of pent-up demand
among foreign nationals for travel in Japan.
Japan has firmly captured global interestin recent years, and research conductedby Remitly shows that Japan ranks second
among the countries that individuals express
the highest interest in moving to (Table 2).

4.0

Global average

Source World Economic Forum, Savills Research & Consultancy

TABLE 2: Remitly Top 10 Countries for Moving Abroad Survey Results, 2021
RANKING OF
NUMBER OF
COUNTRIESTHAT PEOPLE
WANT TO MOVE
TO THE MOSTRANKING OF
NUMBER OF
COUNTRIESVOTESTHAT PEOPLE
WANT TO MOVE
TO THE MOSTCOUNTRY

1

Canada

30

2

Japan

3

Spain

4
5

COUNTRYVOTES(EXCL AFRICA,CENTRALAMERICA, AND
CARIBBEAN)

1

Japan

13

13

2

Canada

9

12

3

Spain

9

Germany

8

4Germany

8

Qatar

6

5

Qatar

6

6

Australia

56Australia

5

7

Switzerland

1

7

Switzerland

4

8

Portugal38

United States

2

9

United States

2

9

United Kingdom

1

10

United Kingdom

2

10Portugal

1

Source Remitly, Savills Research & Consultancy

savills.co.jp/insight-and-opinion/2

High-End Tourism in Japan

Furthermore, Japan actually takes the top
position amongst major voters in termsof tourism and real estate investment(excluding African, Central American and
Caribbean countries). Indeed, Japan has
been a soft power winner over the past few
decades, attracting significant interest inJapanese cuisine, culture, history, and media
from abroad. Furthermore, it is renowned
for its public infrastructure that facilitates
convenient and safe travel, while resilient
supply chains have kept the general price ofgoods and services at relatively affordable
levels, which has improved the ease of accessto Japan by overseas tourists.
Presently, the general price level in Japan
appears to be “on sale”, and extremely cheap
relative to global prices due to the weak yen,which may temporarily elevate the country’s
appeal. Major elevations in general pricelevels may be unmanageable and unlikely
to materialise, given the large proportionof the population that has already enteredretirement age. As such, prices will likely
remain moderate moving forward, whichshould sustain the sense of affordability forthe meantime, at least in yen terms.
Japan is also synonymous with peace andsafety, offering reassurance to those visiting
an unfamiliar country. Given the prevalenceof natural disasters, Japan has establisheditself as a resilient nation through strong
disaster preparedness, including stringent
infrastructure codes, well-defined safety
and evacuation procedures, and a senseof cooperation and composure among its
residents. This can be evidenced by thesmooth evacuation and low fatality rates
during recent critical events, such as the Noto
Peninsula earthquake and the Haneda airport
disaster in January 2024.

Japan is currently experiencing
an inbound tourism boom, while
the high-end tourism market isrelatively underdeveloped and ripewith opportunities. Major visionary
players are already deploying
significant amounts of capital inprospective fields, anticipating
exponential growth and potential
demand. Overall, growth prospects
are bright, and these developments
are likely to accelerate Japan’stransformation into a sustainable
tourist destination of the future.
While Japan holds significant potential
for high-end tourism, the industry remains
relatively modest. The number of luxury
hotels in the country is notably low at 56(Graph 1), especially relative to the roughly 25
million inbound tourists that it welcomed in
2023. In addition, the average total spending
per inbound tourist in 2023 was US$1,400,
which is lower than many global peers. Thereis considerable potential to increase perperson spending by appealing to wealthierand higher-spending visitors, which will

GRAPH 1: Number of Luxury Hotels by Country/Area, 2023
600

HOTEL COUNT

500
400
300
200
100
0

Source Five Star Alliance, Savills Research & Consultancy

3

generate broader positive returns for Japan.
Due to the recent development and rapid
growth of inbound tourism, Japan is beefing
up the necessary infrastructure and services
to welcome high-end tourists. The following
five areas appear to be especially promisingavenues for this growth - Integrated Resorts(IR), ryokan, ski resorts, retail, and medical
tourism. This report examines these areas
and outlooks.
INTEGRATED RESORTS
To assess the potential of IR developments
in Japan, this report looks at Singapore
as a successful model. Singapore has amodest population of 6 million and a GDP
of US$500 billion as of 2023. In 2005, it
reversed its longstanding stance vis-a-vis
casinos and gambling to introduce IR into
the country, despite concerns regarding thepotential undesirable impacts. The rationale
behind this controversial decision largely
stemmed from Singapore’s declining market
share in the regional tourism industry and asense of urgency in losing competitiveness,and integrated resorts featuring casinos
emerged as an appropriate solution.
Since the establishment of the two IRs,
Marina Bay Sands (MBS) and Resorts
World Sentosa (RWS) in 2010, both thecountry’s tourism revenue and its number of
inbound visitors approximately doubled by2019 (Graph 2). According to the Singapore
Tourism Board (STB), the country generated

High-End Tourism in Japan

GRAPH 2: Singapore Total Tourism Revenue and Visitor Numbers, 2008 to 2019
Tourism Receipts (LHS)

30

Number of Visitors (RHS)

20

25
15
SG$ BILLION

15

10

10

MILLION PEOPLE

20

5
5

0

0
2008 2009 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Source Singapore Tourism Analytics Network (STAN), Savills Research & Consultancy

GRAPH 3: Revenue Composition from Singapore IR Complexes, 2019
CasinoHotel Rooms

Other Non-gaming

8
7

SG$ BILLION

6
5
4
3
2
1
0
MBS Revenue

RWS Revenue

Total Revenue

Source MBS and RWS Annual Report, 2019, Savills Research & Consultancy

GRAPH 4: Singapore Daily Per-capita Tourist Expenditure, 2008 to 2019
500
480
460
440

SG$

420
400
380
360
340
320
300
2008 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Source STAN, Savills Research & Consultancy

savills.co.jp/insight-and-opinion/

4

SG$27.7 billion1 in total tourism revenue,
with the IRs contributing approximately
24%, or SG$6.6 billion to the overall figure.
Furthermore, according to Singapore
Tourism Analytics Network (STAN), about
half of inbound tourists visited an IR in 2019,equating to approximately 9.6 million visitors
during the year.
Casinos comprised 68% of the total
revenue generated by Singapore’s IRs, whilehotel rooms accounted for over one-third of
non-gaming revenue (Graph 3), and recorded
a high occupancy rate of above 90% in 2019.
Other additional revenue streams include,
but are not limited to, attractions such as
Universal Studios Singapore and the S.E.A.
aquarium in RWS, as well as Meetings,
Incentives, Conference, Events (MICE)
activities and luxury shopping experiences
offered by MBS.
Singapore has certainly enjoyed outsized
benefits from the IR developments. In
addition to overall tourist revenue having
doubled between 2009 and 2019, daily percapita tourist expenditure increased by aconsiderable amount (Graph 4). Moreover,
Singapore’s hotel industry has experienced
a notable improvement in occupancy rates
from 76% to 87% over the same period (Table3), with luxury hotels experiencing the mostsubstantial increments in terms of both
Average Daily Rate (ADR) and Revenue Per
Available Room (RevPAR) (Graph 5).
The upcoming Osaka IR, a joint venture by
MGM Resorts and ORIX Corp., will be Japan’s
first large-scale entertainment and casino
complex scheduled for completion in 2030, in
Yumeshima, the site of the upcoming Expo
2025 Osaka, with slated total investmentof around JPY1.3 trillion. Developers arereportedly aiming to achieve a total annual
revenue of over JPY500 billion, which
would generate an enormous annual tax
contribution to Osaka prefecture of around
JPY100 billion. In addition, the project is
forecast to create 120,000 construction
jobs during the course of development
and 93,000 permanent jobs, potentiallytransforming Osaka’s economy and inspiring
similar developments nationwide, generating
significant tourism benefits and a wider
economic windfall effect.
Osaka prefecture and Singapore sharesimilar traits, such as overall market size,
population, and geographical area (Table4). The opening of the integrated resort in
Osaka aims to not only replicate the successseen in Singapore, but also has the potential
to catalyse the growth of Greater Osaka andstimulate overall economic development
nationwide. The resort will aim to attract
20 million visitors annually, approximately
twice the figures seen in Singapore in 2019.
Considering Osaka’s larger geographical
1 STB uses an exchange rate of US$1 = SG$1.34 in 2019.

High-End Tourism in JapanTABLE 3: Hotel Occupancy Rates in Singapore, 2009 vs 2019

2009

2019

Overall76%

87%

Luxury72%

88%

Upscale77%

86%

Mid-tier

79%

89%

Economy74%

84%

Source STB, Savills Research & Consultancy

GRAPH 5: ADR and RevPAR Growth Among Hotels* in Singapore, 2009 vs 20192009 RevPAR
2009 ADR

2019 RevPAR
2019 ADR

500
450
400
350

SG$

300
250
200
150
100
50
0
ADR

RevPAR

Overall

ADR

RevPAR

LuxuryADR

RevPAR

UpscaleADR

RevPARADR

Mid-tier

RevPAR

EconomySource Singapore Tourism Board (STB), Savills Research & Consultancy* Covers only hotels approved and inspected by the Singapore Tourist Promotion Board (STPB)TABLE 4: GDP, Population and Area Comparison between Osaka Prefecture andSingapore, FY2021 and 2021
PERIODREGION

GDP/GRP

POPULATIONAREA

FY2021

Osaka Prefecture

US$376 billion*

8.8 million

1,900 sq km

2021

Singapore

US$424 billion

5.5 million

730 sq km

Source IMF, Osaka Prefectural Government, MUFG, Savills Research & Consultancy* Converted with MUFG 2021 yearly average rate5

and population size, coupled with Japan’s
diverse entertainment and cultural offerings
for tourists, the target should be achievable.
Furthermore, developers are anticipating thatthe casino segment will generate 80% of thetotal revenue generated by the IR, aligningwith the current model in Singapore.
Meanwhile, the concurrent extensionof local public transport services and theenhancement of accessibility to airports
and major rail hubs will contribute to asmoother travel experience for tourists,
potentially facilitating IR visitors to explore
other parts of Japan. A positive ripple effectof these developments will be felt acrossmultiple sectors, including hotel and retail,among others. Subsequently, greater levelsof tax revenue should boost investments ininfrastructure, benefitting local residents,
facilitating further growth in Japan’s tourism
sector, and generating a positive multipliereffect for Japan’s wider economy and society.
In addition, the Japanese government
announced in 2020 that a maximum of
three localities would be given permission
to host IRs. In addition to Osaka, various
locations had been considered, including
Hokkaido (Tomakomai, Rusutsu), Tokyo(Daiba), Yokohama, Aichi (Nagoya, Airport),
Wakayama, and Nagasaki (Huis Ten Bosch),although a number of cities withdrew fromthe bidding process, citing concerns such as
inadequate fundraising plans and gambling
addiction issues. In April 2022, Osaka andNagasaki officially applied to host IRs, andOsaka was ultimately chosen as the country’s
first IR host, while Nagasaki’s proposal was
rejected due to financing issues.
Elsewhere, Hokkaido may reconsider
its application stance. Additionally, theTokyo Metropolitan Government appears
to maintain its stance on the pursuit ofIR, stating that it is currently “underconsideration.” If Tokyo decides to proceedwith the project, a potential candidate sitewould be the Tokyo Bay area that extends
across Daiba in Minato and Aomi in Koto.
Indeed, with the anticipated success andmultiplier effect due to the Osaka IR, there ispotential for replicating the concept in otherparts of the country, which would generate
further ripple effects for regional economies
and for the Japanese economy as a whole.
RYOKANThe ryokan segment has generally been
struggling in recent decades. That said,
upscale ryokan have been able to capture asignificant proportion of luxury demand fromwealthy Japanese nationals who had limitedaccess to international travel during the
pandemic. In addition, the inbound tourism
boom over the past decade has led to growinginterest among overseas repeat visitors

High-End Tourism in JapanTABLE 5: Ryokan Performance, 2023* (see Appendix for more details)
ACQUISITIONOCCUPANCY ADR REVPAR
PRICE PER KEY GUESTROOMS
(%)
(YEN)
(YEN)
(MILLION YEN)

PROPERTY NAMEHOSHINOYA Karuizawa

98.7

77

70

95,90073,800HOSHINOYA Kyoto

115.1

25

96

111,200

107,200

HOSHINOYA Fuji

104.0

40

69

83,00057,600HOSHINOYA Taketomi
Island

103.2

48

65

73,70048,200HOSHINOYA Okinawa

122.1

100

49

80,10039,000HOSHINOYA Average

108.6

58

64

86,30058,200

KAI Matsumoto

23.1

26

89

50,70044,900

KAI Tamatsukuri

28.3

24

91

53,70048,900

KAI Ito

22.3

30

91

52,20047,300

KAI Hakone

29.7

32

89

60,90054,100KAI Aso

47.9

12

82

78,40064,700

KAI Kawaji

18.5

54

77

27,10020,800

KAI Kinugawa

64.2

48

90

42,00037,600

KAI Kaga

65.8

48

73

45,80033,500KAI Alps

63.8

48

67

34,50023,000KAI Enshu

31.8

33

85

49,20041,800

KAI Nagato

68.8

40

80

36,00029,000

KAI Kirishima

79.9

49

63

44,40027,900

KAI Beppu

104.8

70

73

43,40031,700KAI Average

49.9

40

79

44,10035,100Ooedo-Onsen Monogatari
Reoma Resort

40.2

241

73

35,60025,800Ooedo-Onsen MonogatariIse-shima

44.0

83

82

36,50029,900Ito Hotel New Okabe

36.4

73

80

34,30027,400Ooedo-Onsen Monogatari
Atami

39.5

76

81

37,00029,900Ooedo-Onsen Monogatari
Toi Marine Hotel

29.8

64

76

32,50024,600Ooedo-Onsen Monogatari
Awara

20.0

95

74

30,30022,300Ooedo-Onsen Monogatari
Ikaho

32.5

40

87

34,90030,400Ooedo-Onsen Monogatari
Kimitsu-no-mori

20.0

41

83

31,10025,800Ooedo-Onsen Monogatari
Kouunkaku

10.6

98

59

27,40016,200

Kinugawa Kanko Hotel

22.5

172

78

32,60025,300Ooedo-Onsen Monogatari
Higashiyama Grand Hotel

10.0

123

75

29,10022,000Ooedo-Onsen Average

27.8

101

77

32,80025,400Source Hoshino Resorts REIT, Ooedo Onsen REIT, Savills Research & Consultancy*As of most recently published figures in 2023.

savills.co.jp/insight-and-opinion/

6seeking an authentic experience in traditional
Japanese ryokan. Overall, the ryokan segment
appears to be a blue ocean full of opportunity,with a renewed awareness and interest in
the sector among high-end visitors. This has
encouraged players in the hospitality sector
to look to the segment for strong returns, andmany are aiming to make entries in the near
future.
The ryokan industry has long been
struggling due to the economic slowdown
since the end of the Japanese bubble period,
and the subsequent collapse of the “banquetboom” model of domestic tourism. The
number of ryokan establishments has fallenfrom nearly 72,000 in 1995 to under 39,000 in
2017, with the 2008 global financial crisis andthe 2011 East Japan earthquake expediting
this decline. Conversely, hotels have grownin popularity over the same period, andhave largely displaced ryokan, especially inurban areas. Currently, the overall ryokan
market is vast, but also fragmented andwithout dominant players. Instead, mostestablishments are independently owned andoperated, and many are dealing with financial
or succession pressures.
There are numerous prime locations forryokan in major hot spring towns, resorts, andurban areas across Japan. There appears to
be an abundance of value-add opportunities
in the market that have potential for robust
growth for well-researched players with deep
pockets and operating acumen. For instance,
Hoshino Resorts REIT is a major player in theryokan segment, and has positioned its luxury“Hoshinoya” and “Kai” ryokan properties
as their flagship brands. As of October 2023,
Hoshino Resorts REIT owns five properties
under the Hoshinoya brand, and 13 properties
under the Kai brand, which together comprise
31% or JPY60.1 billion of their total portfolio
as of 2023, and expects this segment toexpand further in the future.
Ooedo Onsen REIT is another establishedryokan owner and operator, and has built
a JPY31.1 billion portfolio of 11 hospitality
assets, comprising nine mid-range ryokan
properties under their “Ooedo-Onsen
Monogatari” brand and two hotels properties,
both centred around onsen and spa-related
facilities, which are typically popular among
Japanese guests. Overall, the company
appears to be adeptly capturing thegrowing demand for traditional Japaneseexperiences, and has managed to achieve an
impressive average occupancy rate acrossits ryokan and spa hotel properties of 77%
in November 2023, with an average ADR of
JPY32,800 per night. The APA Group, a large
budget hotel group, has recently acquired
the REIT’s asset manager, and has plans togrow it further, although likely in nonryokan areas.

High-End Tourism in Japan

On top of established and growing domestic
players, major international players have also beendrawn to the ryokan segment. A major entry wasby Hyatt Group, which has a long, establishedpresence in the luxury hotel sector in Japan,
and recently announced its collaboration withhotel and ryokan operator Kiraku to develop its
upscale ryokan brand ATONA. The venture is
Hyatt’s response to the shockwaves caused by the
pandemic, and the company aims to cater to thegrowing high-end demand for authentic Japaneseexperiences through modern onsen ryokan.
Sentiment is extremely positive in the luxury
ryokan segment, and as inbound tourism
continues to pick up, we predict further entries
by large operators and a continued expansion of
the market. Successful operators will have thecapacity to offer more attractive wages to staff
and carry out efficient group management ofmultiple properties in the same area, which canhelp them respond to fluctuations in demand andseasonal workforce needs, and help to mitigate thepersistent labour shortage. Exceptionally savvy
ones will be able to integrate and implement digitaltransformation initiatives to capture, measure,visualise, and analyse operating indicators, likeemerging ESG initiatives, which should serve as
an invaluable asset in aiding operations. Given
the growing demand for “authentic” bespoke
experiences in Japan, the spotlight will likely be on
the ryokan segment, which looks to transform froma product of the past into a product of the future. For
additional information, please refer to our “Ryokan
Market June 2023” report.
SKI RESORTS
Skiing reached its peak level of popularity inJapan in the late 1990s, when Japan held theNagano Winter Olympics in 1998. The growthin participation by Japanese nationals in skiing
coincided Japan’s rapid economic expansion, witha peak of over 18 million active skiers2 recorded
in 1998, according to the Japan Productivity
Center. During the 1990s, significant investments
were made into developing ski resorts, and Japanboasted one of the greatest numbers of ski resorts
in the world at over 800 facilities to service thebooming domestic demand.
That said, Japan’s winter sports industry entereda long period of decline after the late 1990s. The
country’s economic stagnation as well as thedeclining number of customers caused many
resorts to experience difficulties. The number ofactive domestic skiers in Japan fell consistently to
as low as 5 million in 2022. As such, many resorts
went out of business, with only those in the mostpopular locations such as Niseko and Hakuba
continuing to prosper, and the total number ofresorts in operation has fallen to fewer than 500. A
lack of investment has resulted in noticeably ageing
infrastructure, antiquated accommodation, and ashortfall of local services and amenities, with manypotential workers from local communities insteadchoosing to search for work in larger urban areas.
2 Also includes people who snowboard

However, although domestic demand weakened
in line with economic stagnation, the WinterOlympics in Nagano likely put Japan on the map
globally as a premier ski destination, and marketing
campaigns, especially by Niseko heavily targetingskiers from overseas (primarily Australia at first) led
to new demand. In recent years, the growing market
of winter sports enthusiasts from Asian nations
has propagated further increments in inboundtourist numbers and subsequently investments into
winter sports resorts in Japan. Many hotel and local
business owners recognised the economic value of
inbound travellers, who tend to spend more timeand money in resorts and surrounding towns. As
such, major players have identified the winter sports
industry in Japan as one ripe with opportunities,
and the current surge in development activity
coincides with the overall inbound tourism wavethat Japan appears to be riding to great success.
To assess the potential of ski resort
developments in Japan, this report looks at
Switzerland as a successful model. Given
Switzerland’s geography, winter sports andsummer resorts have played a leading role
historically in the development of its hospitality
sector. The wider Swiss tourism and hospitality
sector employed 250,000 people, or roughly 5%of the national workforce, and comprised roughly
5% of Swiss GDP in 2022 (US$818 billion3). The
country attracted around 12 million overseas
travellers in 2022, generating a total revenue of
US$17.4 billion 4 from inbound tourism. Alpine
resort towns such as Zermatt, Verbier, and St.
Moritz, which twice hosted the Winter Olympic
Games, have become universally recognised
destinations for wealthy winter sports enthusiasts,
and Switzerland’s tourism industry is now
synonymous with luxury hospitality.
Switzerland’s luxury tourism model has seen
major success thus far. There are 79 five-star hotels
in Switzerland, which, relative to the number of
inbound tourist arrivals of 12 million in 2022, is alarge figure. In comparison, France, which received
79.4 million inbound arrivals in the same year, has
184 five-star hotels, translating to a far lower ratio of
five-star hotels per inbound visitor than Switzerland.
Moreover, Switzerland’s average revenue per
inbound visitor in 2022 amounted to US$1,450 per
visitor, while France, which routinely receives thelargest number of annual overseas visitors, recorded
total revenue from inbound tourism of US$59.7
billion, translating to US$750 per visitor, which issignificantly lower than that of Switzerland.
Looking at resort operations, average weekly
prime rents in a two-bedroom apartment in the
upscale resort Verbier were €5,1005 during thewinter ski season in 2023, while a chalet would
cost €12,000 for a week. Elsewhere, in Andermatt,average weekly prime rents two-bedroom
apartment would cost just shy of €3,000 over thesame period. These cities have many other luxury
hotels that likely have even more premium prices.
3 According to figures by The World Bank.
4 2022 average exchange rate of US$1 = CHF0.95 according toCredit Suisse.
5 Please refer to “The Ski Report, World Residential – Winter 2023/24”
for further information.

7

While Switzerland has achieved notable successin cultivating its luxury tourism industry, it
appears that prospects for future growth may belimited. Firstly, the cost of labour is extremely
high, and the hospitality sector faces severe
worker shortages. Indeed, Switzerland is one of
the world’s most highly developed economies,
with a highly educated and skilled workforce, andis home to leading financial and pharmaceuticalcompanies, which are able to offer more attractive
compensation packages to workers. Meanwhile,
although it is a potential solution that is often
touted, raising immigration levels appears to be asensitive political issue in Switzerland, and appears
unlikely to resolve the issue.
From a visitor’s perspective, Switzerland has
become prohibitively expensive for a large proportionof international travellers. Many professionals, eventhose in high paying jobs, may feel priced out of
Switzerland’s famous alpine resorts, and may instead
opt for more affordable destinations in neighbouring
France, Italy, or Germany.
Japan too faces a handful of roadblocks in thisregard. Japan also suffers from chronic labour
shortages, which is especially prevalent in remoteareas where ski resorts tend to be located. The
situation is so severe that in areas such as Niseko,businesses are offering part-time workers in thewinter season an hourly rate of over JPY2,000,
much higher than rates of workers in Tokyo. Thatsaid, the average income in the hospitality industry
is low, which suggests that offering higher wages
for this growing business should be feasible in theforeseeable future.
In addition, climate change is an issue that
affects the winter sports industry globally. As ski
seasons become shorter and the average volume
of snow falls, resort operators may struggle togenerate sufficient revenue and face financial
difficulties. That said, the average snowfall in these
distinguished ski resorts in Japan reaches worldclass levels, meaning that they should be relatively
resilient even in a warming globe.
Overall, Japan is a beacon of opportunity andpotential for this sector. The famous powder
snow in well-visited resorts such as Niseko
already attracts many winter sports enthusiasts
globally. Most resorts in Japan lack extensive
accommodation and infrastructure for luxury
clients in particular, and are thus ripe fordevelopment. In addition, relatively low wages,
coupled with a growing willingness in Japanto accept greater levels of foreign workforce
and residents will likely keep development andoperational costs at reasonable levels. Meanwhile,
Japan is located in close proximity to several
emerging nations and a growing pool of highnet-worth individuals, whose demand for luxury
experiences can be serviced by resorts in Japan.
By and large, Japan possesses many similarfeatures and qualities that make Switzerland aprime luxury destination, and has yet to fully
realise the growth potential of the sector. In
addition, fortifications have already been made to
the tourism industry in the green season.

High-End Tourism in Japan

Notable progress has already been madein this regard. For instance, a moderate
luxury winter sports sector appears to havealready emerged in Niseko given its quality
and subsequent global popularity, having
been ranked #25 in Savills Ski ResilienceIndex, which measures the quality andreliability of a resort’s conditions. Indeed,some major luxury players have established apresence in Niseko, including the Park Hyatt,
Ritz-Carlton Reserve, and Aman Resorts.
Furthermore, luxury brand Louis Vuitton
opened a pop up at the Park Hyatt in Niseko
for the 2024 ski season.
The upcoming Hokkaido shinkansen
expansion to Sapporo, touted for completionin 2031, will stop in Kutchan and should
significantly improve the ease of travel to
Niseko from Sapporo and Tokyo. In addition,
helicopter services have become available
between New Chitose airport and Niseko,
especially during the high season. Further
development will likely take place as resortsin Niseko become more accessible andpopular, improving the prospects of the highend ski segment in the area.
Like Niseko, Hakuba has remainedcompetitive as a ski resort in Japan since
the Nagano Olympics, and has been in highdemand among overseas tourists immediately
since the lifting of inbound entry restrictions.
Hakuba Valley received over a quarter ofa million inbound skiers in the 2022/2023
ski season, albeit moderately lower than
the figure for 2019/2020 at almost 400,000
visitors. While globally recognised for its
heavy snowfall, Hakuba has some ageing
infrastructure and accommodation that
sorely needs renovation and modernisation.
Many players have made strides in thisregard, with KANOLLY Resorts having paved

the way and opening a luxury hotel in thearea. Yet, there is notably greater demand for
luxury hotels, facilities and infrastructure,
which presents vast opportunities for players
looking to tap into the high-end winter sports
boom in Japan.
Elsewhere, Myoko Kogen in Niigata is one
of Japan’s longest established winter sports
destinations but experienced a prolonged
period of stagnation. The area routinely
receives large volumes of snow, and is also
famous for its onsen facilities, many ofwhich feature milky-white, auburn, andbronze coloured hot spring water. Given
its accessibility to Tokyo via the Hokuriku
shinkansen, Patience Capital Group (PCG)
announced its ten-year, JPY210 billion
investment plan into five resorts in the
ski town, aiming to transform the area
into a globally competitive winter sports
destination. Having reportedly collectedbids from ten global luxury hotel brands,
PCG will initially focus on building high-end
hotel facilities and accommodation for staff
by 2026, then consequently work to expand
wider retail and hospitality offerings innearby urban centres.
Although relatively moderate compared toother resorts in Japan, Appi Kogen in Iwate
appears to have bright prospects as a highend tourist destination, having been awarded‘Japan’s Best Ski Resort’ at the 2022 World Ski
Awards. IHG Hotels & Resorts will expand its
presence in the resort town by refurbishingand opening three hotels, including ANA
InterContinental Appi Kogen Resort in
2022, reportedly the first luxury resort in
the Tohoku region. Meanwhile, the worldrenowned British Harrow School opened
its international branch in Appi Kogen in
2022, with annual tuition of around JPY9GRAPH 6: Per-person Spending by Inbound Tourists, 2014 to 2023*
250,000

200,000

JPY

150,000

100,000

50,000

Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4

0
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Source JTA, Savills Research & Consultancy* Excludes data from during the pandemic, as it doesn’t represent typical “tourist” spending, given thatborders were closed to inbound tourists.

savills.co.jp/insight-and-opinion/

8

million. These developments have helped toraise the profile of Appi Kogen, and signalthat confidence is high in the future growthtrajectory of the area.
Overall, Japan’s winter resort towns are
beginning to emerge from the recent slump as
destinations that can attract high-end guests.
More progress will be needed in replacing
ageing infrastructure and accommodation,and stimulating the growth of local services
and improving accessibility. In addition,observers must pay attention to labour
constraints, which will delay construction
and raise operational costs. Nevertheless,the current trend appears to be promising,and there are significant opportunities forvisionary players with deep pockets in thegrowing luxury ski market in Japan.
HIGH-END RETAIL
Japan’s retail market has recovered
significantly with the influx of inboundtourists over the past year. Indeed,according to the Japan Tourism Agency(JTA), inbound tourists spent around JPY1.4
trillion in 2023, while per-person spendingby inbound tourists is notably higher in the
post-pandemic period (Graph 6). Initially,
wealthy travellers comprised a relatively
large proportion of total inbound visitor
numbers, given that the cost of airfare
and accommodation across the globe were
elevated in 2022 and 2023. Moreover, theweak yen has improved the purchasing powerof foreign guests, encouraging even greaterlevels of inbound spending.
The luxury sector has performed
particularly well as a result, and high street
retail has thrived. Indeed, several high-end
store openings were observed in such areas
in 2023. For instance, Grand Seiko opened
their flagship store in Ginza, which is their
third location in the area, and several luxury
brands, such as BVLGARI have openedin Ginza Six. Elsewhere, Omotesando’s
main luxury retail street Omotesandodori has welcomed famous luxury brands,
including FENDI and Tiffany & Co., while
luxury watch boutique Rolex opened astore in Shinjuku in 2023. Japan has been
an exciting, fast-growing market for luxury
brands, with many major brands recording
double-digit sales growth in 2023, despite
the global economic slowdown affecting
sales globally. Strong performance in Japan
was also underpinned by resilient spending
by wealthy Japanese nationals.
Spending by inbound visitors has been
serendipitous for the rapid growth of theluxury retail sector, with inbound tourists
accounting for more than half of total sales
in several luxury stores in Ginza. Similarly,
in 2023 the department store Takashimaya in
Shinjuku recorded sales of almost 50% higher
than in 2019, while duty-free sales at Matsuya

High-End Tourism in Japan

reached JPY14 billion from April to September
2023, notably higher than JPY10 billion over thesame period in 2019. As Japan pivots towards agreater emphasis on high-end travel, the luxury
retail sector will likely continue to grow in tandem.
The high-end travel segments covered in thisreport should attract increasingly affluent profilesof inbound visitors, creating opportunities for new
and diverse store openings across major prime
spots, and subsequently generating greater future
revenues.
Meanwhile, the growth in the demand for luxury
residential properties, especially over the pasthalf decade, will contribute to the bright future
prospects of the luxury retail sector. Indeed, given
the growing number of ultra-high-net-worth
individuals living in Tokyo, many of whom havea greater preference towards living closer to thecentre of the city, near prime entertainment andretail districts, there has been a slew of largescale developments in central Tokyo over recent
years to cater to this demand6. For instance,
luxury residential and hospitality operator Aman
Resorts opened the five-star hotel Aman Tokyo
in Otemachi Tower, in addition to 91 ultra-luxury
Aman branded residences in the highest floors of
the newly completed Azabudai Hills Mori JP Tower
in Minato. Given Japan’s emergence as a prime
global tourist destination, a greater emphasis on
luxury offerings will likely attract many highend repeat visitors, with many desiring to have aresidential base in Japan. For instance, the wellknown billionaire Jack Ma may be one example,
with sightings of him in Tokyo reported last year.
This is positive news for Japan’s high-end retailsector, which stands to benefit from a potential
influx of affluent and high-spending new residents.
Overall, prospects are positive for the luxury
retail sector in Japan. The growth of inboundtourism brought about a large recovery in retailsector performance, and has come to comprise ameaningful proportion of total retail spending inJapan. The further development of Japan’s luxury
tourism options looks to attract more highspending repeat visitors, whose demand should
support the further growth of Japan’s high-end
retail sector.
MEDICAL TOURISM
Japan stands out in terms of offering high-quality
and advanced healthcare services, yet has relatively
affordable healthcare compared to many developed
countries, and draws affluent patients fromacross Asia. Indeed, high net worth individuals
have greater capacity to travel abroad in searchof premium healthcare, and according to a study
done by IMARC group, the global medical tourism
market is projected to witness significant growthfrom US$97 billion in 2022 to an estimated US$337
billion by 2028. To promote medical tourism inJapan, the government introduced medical visas in2011, which were designed to increase accessibility
for foreign patients to receive treatment, undergo
6 For further information, please refer to our“Tokyo Residential: Ultra-luxury – March 2023” report.

savills.co.jp/insight-and-opinion/

health check-ups, and simultaneously engage insightseeing. Overall, Japan appears to be ideally
positioned to cater to this demand, and theindustry appears to have significant prospects forfurther growth.
With the global rise in life expectancy, there isa growing demand for preventive medicine andtreatment for lifestyle-related diseases. Japan leads
the world in healthy life expectancy, supported
by a strong emphasis on preventive medicine
through comprehensive health checkups and highaccessibility to advanced medical technology.
Indeed, Japan possesses extensive medical
infrastructure, with one of the highest numbersof MRI and CT machines per capita among otherOECD countries.
In addition, Japan’s proficiency in specialised
medicine sets it apart from other countries.
For instance, cutting-edge treatments, suchas regenerative medicine, stem cell therapy,
robot-assisted surgery, and precision medicine
for cancer treatment, offer patients advanced
healthcare solutions that may not be universally
accessible in patients’ home countries. This also
extends to specialised fields such as neurological,
cardiovascular, and robotic rehabilitation
treatments, presenting a notably comprehensive
spectrum of care.
In recent years, specialist facilities dedicatedto senior living and medical therapy have been
emerging in Japan over recent years. The investment
arm affiliated with major developer Mori Trust isinvesting JPY250 billion into developing a resort
for wealthy patrons in Tomakomai, Hokkaido,
including four hotels, ten condominium buildings
and medical facilities, with a luxury hotel
reportedly to be operated by the establishedhigh-end resort brand Jayasom. The developer
has been drilling for natural onsen water, which
will contribute to the resort’s treatment options,while the close access to nature and ski resorts will
provide a range of leisure options for guests.
Although perhaps scarcely known among nonJapanese nationals, toji culture has been alivefor centuries in Japan. It is a traditional practicewhere guests spend an extended period of time
(typically a week or longer) at an onsen resort
town, regularly using hot spring baths to alleviate
stress and improve their overall health andwellbeing. Certain types of accommodation, often
traditional ryokan, would be focused on longer
staying guests, and typically prepare healthy
and locally sourced food to contribute towards
the therapy process, while different types of hot
spring baths are available that contain various
minerals and nutrients, which are claimed toalleviate certain health conditions. Indeed, theglobal rise in mental health cases, in conjunction
with a growing interest in traditional Japaneseculture will likely lead to greater awareness ofthe therapeutic properties of Japanese onsen
among foreigners, perhaps contributing to further
growth in inbound demand for medical andhealthcare services in Japan.

9

Meanwhile, many large insurance firms inparticular appear to recognise the strong growthpotential in the medical and elderly care services
sector, and may look to integrate their real estate
investments in the healthcare field within theircore insurance business strategies as platforms
for further revenue growth. For instance, AXA
Investment Managers has been active in the elderly
residential care market in Japan in recent years. In
2022, it acquired a portfolio consisting of 15 elderly
care facilities with 800 units for JPY21.9 billion, as
well as a mixed-use elderly care services buildingin Yokohama, housing residential units, retail,and clinics. The company extended its healthcare
platform in November 2023 by acquiring two
purpose-built residential healthcare facilities witha total of 331 units in Hokkaido. Players with asignificant presence in the market may be able touse their healthcare and senior care home assets
under management as platforms to offer more
integrated and streamlined health and wellbeing
services possibly to visitors and residents of thesefacilities and generate additional revenues.
That said, the sector is still underdeveloped
and faces several issues common to other growing
high-end sectors in Japan. For instance, specialist
foreign language speaking workers are limited inJapan, so the cost of labour will likely be higher.
Furthermore, developing large facilities insecluded municipalities such as Tomakomai will
require the understanding of local communities,
and planning permission may also take time.
Also, additional dedicated infrastructure willbe essential in many cases, including staff
accommodation and transport, which may
further increase development costs. Nevertheless,Japan’s strengths in the field of advanced medical
treatments, in addition to its growing expertise inhigh-end tourism will likely position Japan as an
appealing destination for medical tourism.
JAPANESE CORPORATIONS THRIVING
IN STRATEGIC GROWTH SECTORSAs outlined in our analysis of “Japan’s Prospects
Towards 2040,” Japanese corporations havedemonstrated impressive performance, marked
by a steady increase in earnings per share (EPS).
Companies with forward-thinking strategies haveadeptly identified and capitalised on key growthareas. Below are exemplary companies strategically
positioned in the sectors discussed:
Integrated Resorts
Company:

ORIX Corporation

Strategic
Exposure:

ORIX stands as a prominent
player in the integrated
resorts sector, capitalising on
the burgeoning demand forentertainment and hospitality
complexes. With strategic
investments and diversified
offerings, ORIX is well
positioned to capitalise on the
evolving landscape of leisure andtourism.

High-End Tourism in Japan

RyokanLuxury Real Estate

RetailCompany:

Hulic Co., Ltd.,ORIX Corporation

Strategic
Exposure:

Hulic and ORIX havedemonstrated significant
involvement in the Ryokan
industry. Leveraging theirresources and expertise,these companies arecontributing to preserving
and promoting Japan’s richcultural heritage, while cateringto the shifting preferences ofdomestic and international
travellers seeking authentic
hospitality experiences inJapan.

Ski Resorts
Company:

Tokyu Corporation,
Seibu Holdings Inc.

Strategic
Exposure:

Tokyu and Seibu haveestablished a strong presencein the ski resort industry,
capitalising on Japan’s
renowned powder snow andoverall volume of snowfall,in addition to its famed
picturesque landscapes.
Through investments ininfrastructure and amenities,
these companies are working
to enhance the appeal of their
ski resorts, further attracting
domestic and international
visitors alike.

Company:

Isetan Mitsukoshi Holdings
Co., Ltd.,
Takashimaya Co., Ltd.,J. Front Retailing Co., Ltd.

Strategic
Exposure:

Isetan Mitsukoshi,
Takashimaya, and J. Front
Retailing are stalwarts in
the Japanese retail sector,
catering to diverse consumer
needs and preferences. Witha focus on personalised
services to high-end
customers, these companies
have demonstrated robust
growth amidst an increasinglycompetitive retail landscape.

Medical Tourism
Company:Mori Trust Co., Ltd.

Strategic
Exposure:Mori Trust has strategically
positioned itself in theburgeoning field of medical
tourism, facilitating the
integration of healthcare
services with hospitality
offerings through its own
global alliances. With a focus
on premium amenities andpersonalised care, Mori Trustenhances Japan’s appeal asa destination for medical
travellers seeking world-class
treatment and hospitality.

TABLE 6: Leading Japanese Corporations in Strategic Growth Sectors

STRATEGIC AREAS

LEADING COMPANIES

Integrated Resorts

ORIX

RyokanHulic, ORIX

Ski Resorts

Tokyu, Seibu

RetailIsetan Mitsukoshi, Takashimaya, J. Front Retail

Medical Tourism

Mori Trust

Luxury Real Estate

Mitsui Fudosan, Mori Building
Source Savills Research & Consultancy

savills.co.jp/insight-and-opinion/

10

Company:

Mitsui Fudosan Co., Ltd.,
Mori Building

Strategic
Exposure:

Mitsui Fudosan and Mori
Building are leaders in theluxury real estate sector,
offering premium properties
and iconic developments. Witha focus on large mixed-use
developments, incorporatingarchitectural innovation
and unparalleled amenities,
these companies cater to thediscerning tastes of high-networth individuals and global
investors, contributing toJapan’s status as a premier
destination for luxury living.
Mitsui Fudosan also owns
the Imperial Hotel andTokyo Dome, which possess
tremendous opportunities
for future development. Mori
Building has a busier upcoming
pipeline of developments on
top of the recently opened
Azabudai Hills, which houses
Aman Residences, Tokyo.

These exemplary corporations exemplify
Japan’s proactive approach to seizing
opportunities and driving growth acrossdiverse sectors. Through strategic foresightand effective execution, these companies
continue to thrive in an ever-evolving
business landscape, contributing toJapan’s economic prosperity and global
competitiveness.
OUTLOOK
Japan has all the trappings of a high-end
tourism destination – a rich and refined
culture, renowned cuisine, and reputablecustomer service and social stability. Yet,for a long period of time, Ginza was Japan’s
only globally recognised high-end hot spot.
Presently, Japan has finally begun to emerge asa luxury travel hub, and as infrastructure andservices are developed further, it will become
more ready to welcome high-end visitors. With
careful planning and sufficient investment,
Japan’s myriad of natural and cultural features
can underpin significant further a growth inJapan’s high-end travel industry.
Many established players have alreadydeployed capital in a number of existinghigh-end segments in Japan, which are ripewith opportunity. For instance, the profilesof many of Japan’s ageing ski resorts areundergoing a transformation, notably withan influx of high-end hotels and services
in response to the rapid growth in inbounddemand for skiing in Japan. Meanwhile, theryokan sector, which had experienced similar

High-End Tourism in Japan

stagnation, has enjoyed a resurgence in popularity
with a growing preference towards more authentic
Japanese experiences, and several players are
already capitalising on the wealth of opportunities
available in the blue ocean market.
In addition, some relatively new industries
will become promising additions to Japan’s
tourism roster. The Osaka IR will mark the birthof the casino industry in Japan. Parties involved
anticipate that inbound spending will cause aripple effect, boosting local employment andtransport infrastructure, as well as contributing
to further regional and national economic growth.
The successful development of the IR in Osakashould also pave the way for further developments
in Japan, which will likely repeat this positive
multiplier effect elsewhere. Likewise, medical

tourism has historically gone under the radar inJapan, despite Japan’s world-class medical careand hospitality services, in addition to its onsen
and ryokan culture, which is gradually starting
to attract greater attention from abroad. Further
improvements to accessibility and infrastructure
could help to cement Japan as a leading global
destination for medical and wellbeing tourism.
Demand from inbound tourists for travel inJapan has gone from strength to strength since
the end of the pandemic, and this encouraging
trend is expected to continue and gain
momentum. At the same time, we anticipate
a general expansion in the demand for luxury
services globally, with income inequality
progressing in many economies and expectedto accelerate as urbanisation and technologicaldevelopment progress. As Japan transitions toa global tourist destination, and makes further
strides in developing its high-end sectors, its
image may gradually change to one of “luxury”,
and should allow Japan and Japanese corporations
capitalise on inbound tourism more effectively
and earn greater revenue. This will be facilitatedby Japan’s world-renowned hospitality, in addition
to its social and economic stability, reliable andresilient infrastructure, as well as the slew ofluxury developments in the pipeline. Overall,
prospects for high-end segments in Japan arebright, and observers should anticipate exciting
further growth.

For more information about this report, please contact us
Savills Japan

Savills Research

Christian Mancini
CEO, Asia Pacific(Ex. Greater China)+81 3 4330 3611
cmancini@savills.co.jp

Tetsuya Kaneko
Managing Director, Head of
Research & Consultancy, Japan+81 3 4330 3103
tkaneko@savills.co.jp

Simon Smith
Regional Head of Research& Consultancy, Asia Pacific+852 2842 4573
ssmith@savills.asia

Savills plc: Savills plc is a global real estate services provider listed on the London Stock Exchange. We have an international network of more than 600 offices and associates throughout the Americas, the UK,continental Europe, Asia Pacific, Africa and the Middle East, offering a broad range of specialist advisory, management and transactional services to clients all over the world. This report is for general informative
purposes only. It may not be published, reproduced or quoted in part or in whole, nor may it be used as a basis for any contract, prospectus, agreement or other document without prior consent. While every effort has
been made to ensure its accuracy, Savills accepts no liability whatsoever for any direct or consequential loss arising from its use. The content is strictly copyright and reproduction of the whole or part of it in any form
is prohibited without written permission from Savills Research.

11

High-End Tourism in Japan

Appendix - Detailed Ryokan Performance, 2023
PROPERTY NAMEACQUISITIONAPPRAISAL
NOI
PRICE
VALUE
(MILLION(MILLION YEN) (MILLION YEN)
YEN)

ESTIMATEDCAP RATE(APPRAISALDIRECT) (%)

ACQUISITIONOCCUPANCY ADR REVPAR
PRICE PER KEY GUESTROOMS
(%)
(YEN)
(YEN)
(MILLION YEN)

HOSHINOYA Karuizawa

7,600

12,300

630

5.1

98.7

77

70

95,90073,800HOSHINOYA Kyoto

2,878

4,530

203

4.5

115.1

25

96

111,200

107,200

HOSHINOYA Fuji

4,160

4,370

184

4.2

104.0

40

69

83,00057,600HOSHINOYA Taketomi Island

4,955

4,950

219

4.4

103.2

48

65

73,70048,200HOSHINOYA Okinawa

12,21013,500

720

5.3

122.1

100

49

80,10039,000HOSHINOYA Average

6,360

7,930

391

4.9

108.6

58

64

86,30058,200

KAI Matsumoto

600

982

75

7.6

23.1

26

89

50,70044,900

KAI Tamatsukuri

680

1,410

108

7.7

28.3

24

91

53,70048,900

KAI Ito

670

1,640

94

5.7

22.3

30

91

52,20047,300

KAI Hakone

950

1,530

95

6.2

29.7

32

89

60,90054,100KAI Aso

575

725

42

5.8

47.9

12

82

78,40064,700

KAI Kawaji

1,000

1,320

99

7.5

18.5

54

77

27,10020,800

KAI Kinugawa

3,080

3,420

129

3.8

64.2

48

90

42,00037,600

KAI Kaga

3,160

3,390

130

3.8

65.8

48

73

45,80033,500KAI Alps

3,060

3,200

123

3.8

63.8

48

67

34,50023,000KAI Enshu

1,050

1,110

47

4.2

31.8

33

85

49,20041,800

KAI Nagato

2,750

2,940

172

5.9

68.8

40

80

36,00029,000

KAI Kirishima

3,913

4,090

202

4.9

79.9

49

63

44,40027,900

KAI Beppu

7,335

7,590

420

5.5

104.8

70

73

43,40031,700KAI Average

2,217

2,565

134

5.2

49.9

40

79

44,10035,100Ooedo-Onsen Monogatari
Reoma Resort

9,697

8,700

630

6.5

40.2

241

73

35,60025,800Ooedo-Onsen MonogatariIse-shima

3,656

3,820

218

6.0

44.0

83

82

36,50029,900Ito Hotel New Okabe

2,657

2,820

144

5.4

36.4

73

80

34,30027,400Ooedo-Onsen Monogatari
Atami

3,000

3,470

190

6.3

39.5

76

81

37,00029,900Ooedo-Onsen Monogatari
Toi Marine Hotel

1,910

2,020

112

5.9

29.8

64

76

32,50024,600Ooedo-Onsen Monogatari
Awara

1,901

2,020

129

6.8

20.0

95

74

30,30022,300Ooedo-Onsen Monogatari
Ikaho

1,299

1,360

70

5.4

32.5

40

87

34,90030,400Ooedo-Onsen Monogatari
Kimitsu-no-mori

819

829

46

5.6

20.0

41

83

31,10025,800Ooedo-Onsen Monogatari
Kouunkaku

1,040

1,190

82

7.9

10.6

98

59

27,40016,200

Kinugawa Kanko Hotel

3,870

6,050

343

8.9

22.5

172

78

32,60025,300Ooedo-Onsen Monogatari
Higashiyama Grand Hotel

1,230

1,410

87

7.1

10.0

123

75

29,10022,000Ooedo-Onsen Average

2,825

3,063

186

6.6

27.8

101

77

32,80025,400Source Hoshino Resorts REIT, Ooedo Onsen REIT, Savills Research & Consultancy
Appraisal value, NOI, occupancy, ADR, RevPAR as of most recently published figures in 2023: October 2023 for Hoshino Resorts REIT, November 2023 for Ooedo Onsen OEIT.

savills.co.jp/insight-and-opinion/

12