Japan Hospitality Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 24.79 Billion |
| Market Size (2029) | USD 26.29 Billion |
| CAGR (2024 - 2029) | 1.18 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Japan Hospitality Market Analysis
The Hospitality Industry in Japan Market size is estimated at USD 24.79 billion in 2024, and is expected to reach USD 26.29 billion by 2029, growing at a CAGR of 1.18% during the forecast period (2024-2029).
In Japan, hotel performance remained weak for most of 2021. However, slightly recovering occupancy rates from the previous half-year are almost at the levels seen in 2H/2020, even without the help of the 'Go To' Travel campaign. Moreover, hotel revenues have also improved slightly. In 2H/2021, the average daily rates (ADR) index increased by 0.8 points half-year-on-half-year (HoH), and the revenue per available room (RevPAR) index increased accordingly by 3.8 points HoH.
With the COVID-19 pandemic drastically decreasing revenue from accommodation and other key revenue streams, such as corporate events and banqueting, the hospitality industry in Japan has been struggling over the past two years. 2020 saw a rapid increase in the number of bankruptcies, exceeding 120 cases, more than half of which resulted from the pandemic. While the number of bankruptcies in 2021 has fallen, more than two-thirds were due to the pandemic, showing its lingering effects.
Budget hotels, in particular, have been hit harder by the pandemic due to the large supply in the market. The small room sizes of such hotels appear to be an issue for both customers and operators, especially after the pandemic.
Overseas investors have also been looking at the Japanese hospitality industry. For instance, Baring Private Equity Asia acquired The B Osaka Midosuji, a large hotel in Chuo ward, Osaka, in a transaction estimated at over JPY 10 billion (USD 74 million). Overall, while 2021 has seen large transactions in the hotel sector, transaction volumes have been relatively low considering the pandemic.
Japan Hospitality Market Trends
This section covers the major market trends shaping the Japan Hospitality Market according to our research experts:
Increasing Number of Tourists is Driving the Market
International travelers are slowly returning to Japan. According to the Japan National Tourism Organization, the country welcomed 206,500 overseas visitors in September. It was the first time the figure has surpassed 200,000 since the start of the COVID-19 pandemic. The largest number of visitors was from South Korea at 32,700, followed by Vietnam at 30,900, the United States at 18,000, and China at 17,600.
The government has gradually eased border control measures since March, and the number of overseas visitors has subsequently increased significantly compared to 2021, when Japan's borders were almost completely closed. September saw a more than 11-fold increase compared to the same month a year earlier.
The easing of border restrictions coincided with the rapid depreciation of the yen, which has made Japan a more affordable option for many foreign tourists. The number of overseas visitors is expected to continue to climb in the months ahead.
Rising Luxury Hotel Segment Boosting the Market in Japan
The luxury hotel sector has garnered the attention of many brands looking to expand their footprint in the market.
Japan has a relatively limited number of luxury hotels compared to other countries. According to Five Star Alliance, Japan has slightly over 50 hotels listed. In contrast, many Western countries completely dwarf this number, and even neighbors in the Asia Pacific, like Hong Kong and Singapore, have a comparable number of luxury hotels despite the vast difference in the sizes of their economies.
Many well-known international brands have already started opening luxury hotels in Japan. For instance, in late 2020, The Tokyo EDITION, Toranomon, was opened, and the Marriott will keep expanding its footprint with The Tokyo EDITION, Ginza, in 2022. Investment volumes in the hotel sector were on par with the previous year and are expected to increase in 2023. Opportunities in the Japanese hotel market are likely to emerge shortly further.
Japan Hospitality Industry Overview
Homegrown hotel companies largely dominate the hospitality industry in Japan. Domestic brands and their chains constitute around 90% of the total market share. Toyoko Inn Co. is the largest hotel chain in the country in terms of rooms/key supply. It has more than 250 hotel properties and offers around 50,000 rooms/keys across the country. However, with technological advancement and service innovation, other domestic and international companies are increasing their market presence by securing new contracts and tapping new markets. Players including, Toyoko Inn Co Ltd., Route-Inn Hotels, APA Hotels & Resorts, Prince Hotels & Resorts, and Super Hotel Co Ltd., among others have been profiled in the report.
Japan Hospitality Market Leaders
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Toyoko Inn Co Ltd
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Route-Inn Hotels
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APA Hotels & Resorts
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Prince Hotels & Resorts
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Super Hotel Co Ltd
*Disclaimer: Major Players sorted in no particular order
Japan Hospitality Market News
- On October 20, 2022, Hyatt expanded its portfolio of hotels in Japan with the opening of the Fuji Speedway Hotel in Shizuoka, the first Unbound Collection by Hyatt property in the country. The hotel features 120 rooms, including 21 suites, with private balconies offering views of the Fuji Speedway race circuit or Mount Fuji.
- On July 25, 2022, UK-based hotel group YOTEL announced the launch of its first hotel in Japan, which will be located in Ginza in Tokyo. The hotel will feature the brand's signature robotic staff, motorized SmartBeds, as well as fully integrated technologies.
Japan Hospitality Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Porter's Five Forces Analysis
4.4 Insights into Revenue Flows from Accommodation and Food and Beverage Sectors
4.5 Leading Cities in Japan with Respect to Number of Visitors
4.6 Investments (Real Estate, FDI, and Others) in the Hospitality Industry
4.7 Technological Innovations in the Hospitality Industry
4.8 Insights into Impact of Shared Living Spaces on the Hospitality Industry
4.9 Insights into Other Economic Contributors to the Hospitality Industry
4.10 Impact of COVID-19 on the Hospitality Industry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Chain Hotels
5.1.2 Independent Hotels
5.2 By Segment
5.2.1 Service Apartments
5.2.2 Budget and Economy Hotels
5.2.3 Mid and Upper Mid-scale Hotels
5.2.4 Luxury Hotels
6. COMPETITVE INTELLIGENCE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Toyoko Inn Co. Ltd
6.2.2 Route-Inn Hotels
6.2.3 APA Hotels & Resorts
6.2.4 Prince Hotels & Resorts
6.2.5 Super Hotel Co. Ltd
6.2.6 Okura Nikko Hotels
6.2.7 Marriott International
6.2.8 Tokyu Hotels
6.2.9 JR Hotel Group
6.2.10 Hotel Mystays*
- *List Not Exhaustive
7. FUTURE OF THE SECTOR
8. APPENDIX
Japan Hospitality Industry Segmentation
The hospitality industry is a broad category of fields within the service industry, including lodging, food, drink service, event planning, theme parks, travel, and tourism. It includes hotels, tourism agencies, restaurants, and bars. The Hospitality Industry in Japan is Segmented by Type (Chain Hotels and Independent Hotels) and by Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid-scale Hotels, and Luxury Hotels). The report offers market size and forecasts in value (USD billion) for all the above segments.
| By Type | |
| Chain Hotels | |
| Independent Hotels |
| By Segment | |
| Service Apartments | |
| Budget and Economy Hotels | |
| Mid and Upper Mid-scale Hotels | |
| Luxury Hotels |
Japan Hospitality Market Research FAQs
How big is the Japan Hospitality Market?
The Japan Hospitality Market size is expected to reach USD 24.79 billion in 2024 and grow at a CAGR of 1.18% to reach USD 26.29 billion by 2029.
What is the current Japan Hospitality Market size?
In 2024, the Japan Hospitality Market size is expected to reach USD 24.79 billion.
Who are the key players in Japan Hospitality Market?
Toyoko Inn Co Ltd , Route-Inn Hotels , APA Hotels & Resorts , Prince Hotels & Resorts and Super Hotel Co Ltd are the major companies operating in the Japan Hospitality Market.
What years does this Japan Hospitality Market cover, and what was the market size in 2023?
In 2023, the Japan Hospitality Market size was estimated at USD 24.5 billion. The report covers the Japan Hospitality Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Japan Hospitality Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key drivers of the Japan Hospitality Market?
The key drivers of the Japan Hospitality Market are a) Integration of technology (AI, IoT) for personalized experiences and operational efficiency b) Growing focus on sustainability (eco-friendly practices, green accommodations) c) Rise in demand for experiential and authentic offerings
Hotel in Japan Industry Report
The Japan Hospitality Market is poised for steady growth, driven by various factors that enhance service delivery, customer satisfaction, and operational efficiency. Segmented into a chain and independent hotels, the market offers diverse service accommodations, including service apartments, budget and economy hotels, mid and upper mid-scale hotels, and luxury hotels. Key regional markets display significant differences in growth potential and dynamics, thoroughly explored in industry analyses such as those by 糖心vlog传媒鈩�, which provide comprehensive market share, size, revenue growth rates, and forecasts. Technological innovations like AI and IoT are being integrated to offer personalized and streamlined services. There's also a growing emphasis on sustainability, setting new standards for eco-friendly practices among establishments aiming to attract environmentally conscious travelers. Moreover, the industry embraces modern preferences for experiential travel by integrating local cultural experiences into their offerings, ensuring a unique and memorable stay for guests. This trend report is available as a free PDF download, providing a valuable resource for understanding market trends and dynamics. This combination of technology, sustainability, and cultural immersion ensures a vibrant landscape for the future of the Japan hotel industry. Get a sample of this industry analysis as a free report PDF download.
