Hong Kong investors are increasingly turning their attention to Japan's hotel sector, motivated by low interest rates and a significant surge in tourism. In 2024, investments in Japanese hotels are expected to reach approximately 600 billion yen (US$4.1 billion) [5f78cfe4]. This trend is underscored by a report from JLL, which noted that hotel deals in the first half of 2024 totaled 378 billion yen, marking a remarkable 64% increase year-on-year [5f78cfe4].
Japan's tourism numbers have soared to 50% above pre-COVID levels, further enhancing the attractiveness of the hotel market [5f78cfe4]. Notable investors include the Chiu family, who own five hotels in Japan through Agora Hospitality Group, and Hon Kwok Land Investment, which plans to acquire 10 hotels in Japan, requiring an investment of 14.5 billion yen [5f78cfe4]. Dorsett Hospitality, operating four hotels in mainland China and four in Hong Kong, is also eyeing opportunities in Japan [5f78cfe4].
The broader economic context is also favorable, as Japanese companies raised wages by 5.28% in 2024, the largest increase in 33 years, which is expected to boost consumer spending and further stimulate the hospitality sector [5f78cfe4]. With Japan receiving US$13.5 billion in property investments, including US$2.6 billion from cross-border investors, the hotel sector is positioned for continued growth [5f78cfe4].
In addition to the influx of Hong Kong capital, Japan's hotel market is attracting global investors, with major hotel chains expanding their presence. For instance, Hilton opened the Canopy by Hilton Osaka Umeda in September 2024, reflecting the optimism surrounding Japan's tourism recovery [21e0befa]. Kenneth Gaw of Gaw Capital emphasized the profitability of consumer-oriented hotel businesses, highlighting their appeal in the current market environment [21e0befa].
As Japan aims to attract 60 million visitors by 2030, the combination of increased foreign investment and a robust domestic economy is likely to drive significant growth in the hospitality sector, positioning Japan as a key player in the global tourism landscape [21e0befa][5f78cfe4].