Overview of the Japanese Lodging Industry and Its Investment Trends – Past, Present, and Future
Overview of the Japanese Lodging
Industry and Its Investment Trends
– Past, Present, and Future
Emily U. Smith
Consulting and Valuation Analyst
HVS, NEW YORK www.hvs.com June 2008
New York San Francisco Boulder Denver Miami Dallas Chicago Washington DC Atlanta Boston Newport RI Vancouver Toronto
London Madrid Athens New Delhi Mumbai Singapore Hong Kong Shanghai São Paulo Buenos Aires Mexico City
HVS, Mineola, New York
Overview of the Japanese Lodging Industry 1
Overview of the Japanese Lodging Industry and
Its Investment Trends – Past, Present, and Future
Despite widespread waves of Westernization that have infiltrated modern
Japanese culture in the post-World War II era, the Japanese lodging industry has generally managed to keep its shroud of “foreignness” intact. While neighboring Asian countries have boasted a host of American and European lodging developments in the past twenty years, Japan has predominantly stuck with the Japanese lodging model of ryokans (traditional inns), Japanesebranded hotels, and its own invention of capsule hotels. However, recent changes in the second half of the present decade have indicated a changing tide of sentiment, as investors reassess their traditionally held views of
Japanese real estate, seeing the potential of tapping into the third-largest economy in the world. The barriers to entry into this decidedly Eastern and
Western hybrid market are beginning to erode, and Western hoteliers and investors alike are poised to benefit from this opportunity.
External Factors
The Influences of Culture
It is essential to understand the impact of Japan’s unique culture upon its economy and travel trends. Prior to Commander Perry’s trip in 1853, demanding that Japan open itself to the Western world, the country led a traditionally isolationist life, typical of several island nations of the same time period. Under Emperor Showa’s rule in the first half of the 20th century,
Japanese citizens
Industry and Its Investment Trends
– Past, Present, and Future
Emily U. Smith
Consulting and Valuation Analyst
HVS, NEW YORK www.hvs.com June 2008
New York San Francisco Boulder Denver Miami Dallas Chicago Washington DC Atlanta Boston Newport RI Vancouver Toronto
London Madrid Athens New Delhi Mumbai Singapore Hong Kong Shanghai São Paulo Buenos Aires Mexico City
HVS, Mineola, New York
Overview of the Japanese Lodging Industry 1
Overview of the Japanese Lodging Industry and
Its Investment Trends – Past, Present, and Future
Despite widespread waves of Westernization that have infiltrated modern
Japanese culture in the post-World War II era, the Japanese lodging industry has generally managed to keep its shroud of “foreignness” intact. While neighboring Asian countries have boasted a host of American and European lodging developments in the past twenty years, Japan has predominantly stuck with the Japanese lodging model of ryokans (traditional inns), Japanesebranded hotels, and its own invention of capsule hotels. However, recent changes in the second half of the present decade have indicated a changing tide of sentiment, as investors reassess their traditionally held views of
Japanese real estate, seeing the potential of tapping into the third-largest economy in the world. The barriers to entry into this decidedly Eastern and
Western hybrid market are beginning to erode, and Western hoteliers and investors alike are poised to benefit from this opportunity.
External Factors
The Influences of Culture
It is essential to understand the impact of Japan’s unique culture upon its economy and travel trends. Prior to Commander Perry’s trip in 1853, demanding that Japan open itself to the Western world, the country led a traditionally isolationist life, typical of several island nations of the same time period. Under Emperor Showa’s rule in the first half of the 20th century,
Japanese citizens