A wave of upscale hotel openings is coming.
According to a JLL report, there were no openings of new international branded hotels in Tokyo in Q2 2025.
That said, international brands are still eager to open new hotels in Tokyo. The report revealed that the second half of 2025 will see a wave of luxury and upscale hotel openings. Fairmont, JW Marriott, 1 Hotel and Caption by Hyatt are all set to debut.
Here’s more from JLL:
In Q2, Tokyo’s hotel sector demonstrated continued growth across all segments in terms of trading performance. The ongoing increase in inbound visitors has driven a sustained rise in ADR, while occupancy has also shown steady recovery.
The luxury and upper upscale segments continued to show strong improvements compared to the same period in 2024. As of YTD June, both ADR and occupancy increased Y-o-Y. Consequently, RevPAR saw a substantial growth from the same time last year. However, occupancy still lagged behind Q2 2019.
Outlook: Global uncertainty may impact performance
Although strong performance trends continued through Q2 2025, escalating geopolitical risks and growing global instability created uncertainty. It will be crucial to closely monitor the impact of these factors on the performance of the second half of 2025.
In the first half of 2025, exchange rate fluctuations had no impact on actual hotel performance. On the other hand, department store revenues fell Y-o-Y for five consecutive months from February 2025, indicating a change in the composition of consumer spending by foreign visitors to Japan.
AloJapan.com