Japan sees boom in luxury hotel business from high net-worth individuals


Joe Baker
Joe Baker
Senior Copywriter
Joe is a Senior Copywriter working on reports, news and analysis. Previously, he worked as a B2B copywriter, journalist and editor covering a broad range of topics, including technology, transport,… Read more
  • High net-worth individuals (HNWIs) are travelling to Japan to experience the country’s luxurious hotels.
  • Japan is home to two of the world’s oldest continuously running hotels.
  • The country is seeking to attract wealthy clients with high-end services and investment.

Japan is witnessing a boom in its luxury hotel business, with overseas HNWIs accounting for nearly half of the ¥494.3bn spent on hotel deals in FY 2023.

Foreign tourists are interested in Japan’s luxury city hotels, as well as its traditional ryokan inns. Japan has grown as a luxury travel destination since the Olympic and Paralympic Games in 2020.

Research from MSCI Real Assets, a global real estate firm, shows that international investors have been pouring money into Japanese hotels at an unsurpassed rate since 2014.

After the covid-19 pandemic, luxury Japanese hotels and resorts have targeted affluent customers with premium services and amenities.

Tetsuya Kaneko, from Savills Japan, predicts that the value of the inbound tourists visiting Japan in the post-pandemic years will be significantly more than the pre-pandemic average.

BentallGreenOak, a private equity firm, has made headlines due to its large spending amount for the purchase of Osaka’s Rihga Royal Hotel – this totalled ¥55bn, according to Bloomberg’s report from 2022.

GIC, Singapore’s sovereign wealth fund, disbursed ¥150bn to Seibu Holdings for its hotel and leisure assets portfolio.

Recently, KKR and Gaw Capital, a Hong Kong firm, finalised an agreement to acquire Hyatt Regency Tokyo from Odakyu Electric Railway, valued at approximately ¥57.1bn.

As Japan’s luxury hotel industry continues to grow, foreign investors and HNWIs must use a reliable money transfer service to make secure international payments.

Japan is home to two of the world’s oldest running hotels: Nishiyama Onsen Keiunkan, founded in 705, and Hōshi Ryokan, founded in 718.

HNWIs looking to experience Japan’s luxury traditional accommodation should find the best exchange rates for the Japanese yen.

Many hotel chains, including Rinaldi, see Japan’s booming luxury accommodation industry as a profitable venture in the long term. Bulgari Hotels & Resorts opened its first Tokyo property earlier this year.

In 2025, Capella Hotels and Resorts will make its Japanese debut with the opening of Capella Kyoto.

2028 will mark the entrance of the Dorchester Collection into Asia with the launch of its first hotel within The Torch Tower near Tokyo Station.

FXC’s money transfer comparison tool can help those investing in Japan to find the best exchange rates and save money on international transfers.

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