Tokyo luxury hotel supply hits 22,881 keys in Q1

Thanks to two new hotels that opened during the quarter. 

JLL revealed in a report that in the first quarter of 2024, two hotels opened in Tokyo, one of which was the 126-key Hyatt House Tokyo Shibuya in February. The other, Janu Tokyo, is located in Azabudai Hills, just steps away from Roppongi, which opened in March. 

This world’s first “Aman” sister brand hotel adds 122 keys to the market. This brings the upscale and above hotel supply to 22,881 keys at the end of March 2024.

No upscale or luxury hotels are scheduled to open in 2024, but some luxury hotels, such as JW Marriott and Fairmont, are scheduled to open in 2025 onwards.

Here’s more from JLL:

Tokyo registered a continued increase in trading performance in all hotel segments in the first three months of the year. The rising number of tourists in the city has led to a significant improvement in the average daily rate (ADR).

Following the trend through the last year, hotels in Tokyo registered high levels of ADR in the first quarter, offsetting the occupancy rate that is still below pre-pandemic levels. As a result, RevPAR continued to exceed pre-pandemic levels.

Outlook: ADR growth to continue beyond Q2 despite some concerns

The strong travel momentum witnessed in Tokyo is anticipated to continue in 2024. As a result, occupancy in Tokyo hotels should pick up slowly along with the increasing number of international tourists, which will complement the strong domestic demand base, and ADR is expected to grow further.

On the other hand, the ongoing conflicts in various parts of the world and changes in exchange rate trends may affect the number of foreign visitors to Japan.

Note: Tokyo Hotels refers to Tokyo's luxury and upper upscale hotel market.