TOKYO – Apartment hotels equipped with in-room kitchens and home appliances are on the rise in Japan on the back of their popularity among foreign tourists seeking stays in home-like environments, creating new business opportunities for construction and real estate companies.
Suitable for families and groups of close friends traveling on medium- and long-stay trips, such accommodation facilities do not have restaurants or other common facilities and require less labor for front desk services and linen replacement than business hotels because of the length of stays.
Said to be feasible to build even on small plots of land, apartment hotels have become a new option for rebuilding aging small- and mid-sized office buildings.
Real estate firm Cosmos Initia Co., seen as one of the pioneers of apartment hotels in Japan, launched its Mimaru brand in 2018 and operates a total of 27 facilities in the major tourist cities of Tokyo, Osaka and Kyoto.
Its hotels have units starting at around 40 square meters in size and can accommodate four to 10 guests each. Foreign nationals make up 95 percent of its visitors, with many staying around four nights.
The average rate for rooms accommodating four guests stands at around 55,000 yen ($360) per room, up sharply from 30,000 yen to 40,000 yen before the coronavirus pandemic, according to the company.
“Although the rise in room rates has eased, supply has not kept up with demand for hotels accommodating large groups in urban areas,” said Masami Akashi, who is in charge of Mimaru operations.
Meanwhile, Nippon Steel Kowa Real Estate Co. entered the market with the &Here brand in March 2024 and opened its third facility late last month in the Shinjuku district of Tokyo. It plans to launch ones in the capital’s Asakusa district, a popular tourist destination, and in Fukuoka in Kyushu.
Daito Trust Construction Co., a major rental housing firm, also aims to open such hotels in Tokyo and Fukuoka in 2027.
According to the Japan National Tourism Organization, the average length of stay among foreign tourists in the country stood at 5.9 days in 2024.
AloJapan.com