Japan’s tourism sector has experienced a remarkable rebound since the COVID-19 pandemic, with over 36 million international visitors last year and projections pointing to 40 million this year. More than 10 million tourists have already arrived in the first few months alone. From your perspective, what makes Japan such an attractive destination for international travelers?
First and foremost, Japan is known for its safety, cleanliness, and strong sense of security—qualities that are deeply appreciated by international travelers. Another major draw is washoku, traditional Japanese cuisine, which has earned global acclaim for its depth, refinement, and variety.
Japan also offers the beauty of four distinct seasons. While climate change has begun to blur some of those seasonal contrasts, visitors can still enjoy the unique experiences each season brings—from cherry blossoms in spring to vibrant autumn foliage.
And of course, omotenashi—Japan’s renowned spirit of hospitality—continues to leave a lasting impression on visitors. Altogether, these elements make Japan an exceptionally attractive and memorable destination.
As Japan welcomes a record number of tourists, concerns around overtourism—particularly in major hubs like Tokyo, Osaka, and Kyoto—have been growing. In your view, what steps should be taken to address these challenges and ensure more balanced, sustainable tourism across the country?
It’s certainly a challenge to divert visitors from major cities like Tokyo, but we operate hotels across Japan, including in cities like Osaka and Hiroshima and more. This allows us to encourage travelers to explore a wider range of regions, helping to spread the economic and cultural benefits of tourism more evenly across the country.
Currently, we operate 15 hotels and are planning further expansion, with a particular focus on eastern Japan. We’re also diversifying our portfolio by developing different types of accommodations to appeal to a broader range of guests and travel preferences.
In terms of overseas expansion, we don’t have any concrete plans at the moment. That said, if we were to receive a proposal or partnership opportunity from another company, we would certainly be open to considering it. As you mentioned, the domestic market is showing strong momentum, and we’re shifting more of our attention toward capitalizing on that growth.
One of the key challenges facing Japan is its demographic shift—home to the world’s oldest population and a shrinking domestic market for internal tourism. This also presents difficulties in hiring and retaining talent. How is your company responding to these dual pressures: the need to adapt to a declining domestic market, and the growing importance of attracting more inbound tourists?
We’ve certainly felt the impact of demographic shifts in recent years. That said, we believe our brand still holds strong appeal, particularly in regions like Osaka and Hiroshima. This hotel in Osaka, for example, has nearly 90 years of history. Because of this legacy and our regional presence, The Royal Hotel often comes to mind for those considering a career in hospitality—something we’re proud of, even as we remain humble about our position in the market.
In terms of talent development, we’ve recognized a decline in young people entering traditional culinary fields. To address this, we launched an in-house training program that allows high school graduates to join us and train as chefs within our organization.
Recruitment, however, is only part of the solution. Retention is equally critical. That’s why we’ve placed a strong emphasis on improving the work environment. We’ve invested in renovations, significant upgrades to employee facilities. We’re also taking steps to improve compensation. Historically, the hospitality industry has been associated with lower wages, so we’re actively reforming our HR system to offer more competitive and attractive packages.
In 2024, we began trialing a new HR framework, with a full rollout planned for April 2026. The core change is a shift toward a performance-based compensation model, where contributions are more directly tied to rewards. By increasing employee engagement and satisfaction, we aim to strengthen our reputation and attract new talent. Ultimately, our goal is to foster a workplace where people can build fulfilling, long-term careers.
With a proud history of more than 90 years, your hotel is a true pioneer in Osaka’s hospitality landscape. For our readers planning a visit to Japan, what would you say sets your hotel apart? What unique strengths or experiences make it a standout choice for travelers?
One of our greatest strengths is the sheer scale of our property—we offer 1,000 guest rooms, making us one of the largest hotels in the region. From the moment guests enter our lobby, they’re greeted by a sense of space and openness that sets the tone for their stay. The main entrance leading into our lounge is another architectural highlight, and we’ve paid careful attention to comfort throughout the building, including spacious, well-appointed guestrooms.
Thanks to our proximity to a major convention center, we are fully equipped to accommodate large tour groups, with the capability to host them entirely on-site. Our location is also ideal for sightseeing, and with a new train line set to open that will connect directly to Kansai International Airport in 2031, accessibility will become even more seamless. We truly believe our hotel offers one of the best bases for exploring and enjoying Osaka to the fullest.
Dining is another standout aspect of the experience we offer. Japanese beef—especially Kobe beef—is incredibly popular among international visitors. On our basement level, we feature an authentic teppanyaki restaurant where guests can savor premium Kobe beef in an elegant setting. After a full day of sightseeing, enjoying a world-class Kobe beef dinner adds a luxurious and memorable touch to their trip—an experience that many travelers treasure.
With the Osaka Expo now underway and participation from over 100 countries, a significant influx of international travelers is expected. Your hotel is uniquely positioned to benefit from this global event. What strategies are you implementing to capitalize on the Expo and attract even more guests during this period?
Our goal during the Expo is to welcome guests who may be staying with us for the first time and help them experience the true essence of what our hotels represent. We see this as an opportunity not just for short-term bookings, but to build lasting connections that extend well beyond the Expo itself.
To that end, we’re preparing to deliver VIP-level hospitality throughout the event. With high-profile gatherings and official functions taking place daily, we’ll be hosting dignitaries and guests from around the world. Exceptional cuisine and attentive service will be at the core of everything we offer, ensuring that international visitors walk away with a memorable experience that reflects the best of Japanese hospitality.
For someone who has never visited before, how would you describe your hotel experience? What should first-time guests expect when they walk through your doors?
I always emphasize three key concepts to our staff: warm omotenashi, exceptional cuisine, and a comfortable atmosphere. We believe that consistently delivering on all three is what truly sets us apart. It’s actually quite rare in Japan to find a hotel that excels equally across all of these areas—and we’ve worked hard to achieve that balance.
Royal has long been recognized for the quality of its food. By pairing that culinary excellence with attentive service from our highly trained staff, we aim to offer an experience that blends authentic hospitality with truly memorable dining. We feel we’re close to perfecting that fusion of heartfelt service and refined cuisine.
As of April 1st, we officially joined the IHG Group and rebranded as RIHGA Royal Hotel Osaka – Vignette Collection. We are proud of our legacy as a premier Japanese hotel, and now, by combining our heritage with IHG’s global expertise, we believe we offer the best of both worlds. In essence, we’ve become a harmonious blend of Japanese tradition and international standards.
RIHGA Royal Hotel Osaka
You’ve also announced your management plan for 2026. Could you share some of the key objectives and strategic initiatives included in this roadmap? What are the main areas of focus for the next few years?
Our midterm goal is to clearly define what we can accomplish over the next three years as we prepare for our 100th anniversary in 2035. At the heart of this plan is our foremost priority: passing on and preserving the spirit and values that define the Royal brand. This remains the foundation of everything we do.
A second major focus is expanding our hotel portfolio through the development of new brands. We currently operate 15 hotels and aim to open two to three new properties each year. So far, we’ve announced four upcoming openings: two hotels in Okinawa and Osaka, both scheduled for spring 2026; a new property in Hakata planned for autumn 2026; and another hotel in Hiroshima slated for 2027. These developments are part of our near-term strategy, and we expect to maintain this steady pace of expansion moving forward.
In parallel, we are advancing digital transformation across the organization, investing in modern systems to streamline operations and elevate the guest experience. At the same time, we are upgrading our existing properties through renovations and capital improvements. These enhancements not only raise the overall quality of our offerings, but also contribute to increasing the average spend per guest.
M&A has been a key part of your growth strategy, beginning with acquisitions in Tokyo, such as the Park and Shiba hotels. You’ve also highlighted the significance of your partnership with IHG. Looking ahead, what role will M&A and international partnerships play in your long-term plans?
We have a long-standing partnership with Shiba Park Hotel—one that goes far beyond business transactions. Our president and chairman have maintained close relationships with their executive team for many years, and our collaboration spans more than 70 years, dating back to their founding. What unites us isn’t physical assets or properties, but a shared culture, aligned values, and a common way of thinking. There’s a deep sense of synergy between us—we complement each other and help offset each other’s weaknesses.
During the COVID-19 pandemic, we had meaningful discussions about how to grow together, and we felt the timing was right to take the next step. Opportunities for hotel expansion like this don’t come around often, so it was important for us to act with a long-term view.
Looking ahead, our strategy isn’t limited to acquiring additional hotel properties. We’re also exploring M&A opportunities in adjacent sectors where there’s potential for operational synergy or service enhancement. While we don’t have any concrete partnerships in place at the moment, we remain open and proactive in exploring these possibilities.
For readers who may not be familiar, how would you describe the Royal Group as a whole? What defines your identity and sets you apart in the hospitality industry?
RIHGA Royal Hotels has a long and proud history in Japan. While we do not currently operate hotels overseas—apart from a franchised property in Guam—our strength lies in delivering a truly authentic Japanese experience. This includes exceptional cuisine, a strong emphasis on safety, and the warm hospitality that defines omotenashi.
We manage a diverse portfolio of hotels tailored to different markets. In major cities such as Tokyo, Osaka, Kyoto, Hiroshima, and Kokura, we operate large-scale “Grand” hotels that serve as regional landmarks. We also run resort properties, including a new resort hotel scheduled to open in Okinawa in spring 2026. Each hotel is designed with its location in mind—for example, our new property in Namba reflects the unique character and culture of that area. Across Japan, our offerings range from luxury urban accommodations to serene destination resorts, all unified by our commitment to comfort and hospitality.
We also take great pride in our legacy of serving distinguished guests. Our experience in welcoming VIPs dates back generations, including members of Imperial family, whom we’ve hosted in cities such as our hotel in Hiroshima, Kokura, and Osaka. We remain committed to carrying this legacy forward and delivering exceptional service to every guest.
For more information please visit our website: https://www.rihga.com/tokyo
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