• Interest in the Japan hospitality sector among domestic and international investors has increased in recent years, with hotel property transactions surging by 3.2x to JPY 325 billion between 2012 and 2015. At the same time, transaction yields have fallen sharply, as the sector has become mainstream among institutional investors.
  • New hotel development is accelerating against the backdrop of brisk sales and the growing number of inbound tourists.
  • Assuming 40 million inbound tourists in Japan in 2020, as per the government’s latest target, the supply-demand balance in central Tokyo and Osaka is expected to remain tight.
  • Investment in hotels is set for rapid growth in coming years, with a large number of new development projects being undertaken by hotel J-REITs and institutional investors.