Luxury lifestyle hotels in demand in Japan
AccorHotels to open MGallery Sofitel in Kyoto, 2018
Tuesday, May 8th 2018
AccorHotels announced its expansion in Japan with MGallery Sofitel Kyoto set to open after Q4 in 2018. The 144 room hotel will have excellent access to a wide array of Japanese culture, heritage, and historical sites.
A boutique Japanese asset management company, will be the developer for this project. This is a rare case in that it has been major developers that have taken on this role up until now, and it is unique to see an asset manager step into luxury hotel development. We can interpret this as a new trend in the market- with more investors looking for opportunities in the luxury hotel space. With more financial support from banks, we can predict more availability for luxury projects to erect in Japan as well.
Overseas operators can offer value add to Japanese markets who lack track record in established luxury projects. Being a recognized brand in the overseas market, it caters well to the inbound market that is continuously growing.
Asterisk has been watching the movements of the market, and have written on the demand for boutique lifestyle hotels. We predict more hotels to come up in Kyoto, as well as further branded luxury residences to come to Japan in the near future.
In AccorHotel’s press release, Patrick Basset, AccorHotels Chief Operating Officer for Upper SE and NE Asia, said “We are excited to offer our guests a beautiful boutique hotel which will be infused with the spirit of Kyoto at a time when Japan is enjoying high tourism growth….” For upcoming hotels in Japan, it is important to incorporate a Japanese essence, especially as an overseas operator. By connecting guests with the Japan experience- be that through wellness, gastronomy, access to heritage/ cultural sites, lessons, or shopping; it is a way to elevate their Japan trip.
Asterisk is working on a IT based luxury experience concierge that can help overseas operators connect their guests with Japanese goods and experiences. By installing this service, overseas operators can provide guests with a more integrated cultural experience.
For further details about this newsletter and our services, please contact: Yukihiko Ito (yuki@asteriskrealty.jp) / Elizabeth Deakin (elizabeth@asteriskrealty.jp)
