Three luxury hotels to debut in Tokyo in the second half of the year

All three are expected to open in quick succession.

There were no openings of new international brand hotels in Q1 2025, according to JLL.

That said, international brands are still keen to open new hotels in Tokyo. The latter half of 2025 is set to witness a wave of luxury hotel openings, such as Fairmont, JW Marriott, and 1 Hotel slated to debut in quick succession.

Here’s more from JLL:

In Q1, Tokyo’s hotel sector demonstrated continued growth across all segments in terms of trading performance. The ongoing increase in inbound visitors has driven a sustained rise in ADR, while occupancy has also shown steady recovery.

In the luxury and upper upscale segments, Q1 showed significant improvements compared to the same period in 2024. ADR increased by 10.6%, while occupancy rose by 6.3 points. Consequently, RevPAR saw a substantial growth of 20.1%. However, occupancy still lag behind the Q1 2019 by 5.7 points.

Outlook: Keeping a close eye on the impact of global uncertainty on performance

While the strong performance trends continued through Q1 2025, the escalation of geopolitical risks and increasing global instability in April have created uncertainty. It will be crucial to closely monitor how these factors impact the performance of the second quarter.

The USD/JPY exchange rate is experiencing significant volatility. Given that the previously weak Yen has been a major factor in boosting inbound visitor numbers and driving up ADR, any sharp appreciation of the Yen could potentially impact hotel performance.