Blending Japanese Hospitality with Modern Luxury

In 2024, Japan experienced a record-breaking recovery from the COVID-19 pandemic, welcoming 36.8 million tourists. This number is expected to exceed 40 million in 2025. In response, the Japanese government has set an ambitious goal of attracting 60 million inbound visitors by 2030. From your perspective, what makes Japan such an appealing destination for international travelers?

Inbound tourists visit Japan for a wide range of reasons, each drawn by the country’s unique appeal. Among the most compelling attractions are Japan’s customs and culture, as well as its globally recognized clean, safe cities and rich natural landscapes.

Hospitality also plays a crucial role. One characteristic of Japanese culture is the emphasis on non-verbal communication. People are highly attuned to the atmosphere of a given situation and often respond intuitively in the most appropriate way. This kind of subtle, instinctive hospitality is truly unique to Japan.

Many international guests have shared how relaxing their experience was during their stay at Japanese hotels. We believe this is the result of Japan’s deeply rooted spirit of hospitality. As a Japanese hotel, it’s vital for us to maintain and consistently deliver this high standard. At our properties, we’ve established a sustainable model for passing on this service mindset through our own in-house training programs.

Food is another essential part of the hotel experience. While accommodations account for a significant portion of revenue, we place just as much emphasis on the quality of our cuisine. This strong commitment to food is one of the key factors that sets us apart from other hotels.

Marriott is planning to open a new hotel in Fukui Prefecture, while Western Inn is preparing to launch a property in Tottori—both examples of prefectures in Japan that receive relatively fewer visitors. Could you tell us about your company’s strategy for regional revitalization? Additionally, which prefectures do you see as having the greatest potential for future growth?

It’s true that foreign hotel brands are expanding into regional areas of Japan, intensifying competition. However, this trend also presents new opportunities. Many international travelers are seeking more authentic experiences and therefore tend to choose hotels operated by Japanese companies.

To give you some background, our group company Tokyu Corporation is involved in urban development. Within the Tokyu Group, we focus on creating hotels that are deeply rooted in their local communities. By working closely with regional property owners, we’re able to develop a brand presence that’s flexible and reflective of each area’s unique character. This approach allows us to highlight local identity while maintaining the high standards and quality associated with the Tokyu name.

Our hotel operations are closely aligned with the broader regional development plans of our parent company. As a result, our hotels are managed with a strong focus on local integration. In Shibuya and Sapporo, for example, we’ve launched a lifestyle brand based on a community-oriented philosophy, helping us bring out and elevate the distinct personality and appeal of each destination we serve.

SAPPORO STREAM HOTEL

Do you have a specific timeline in place for the launch of this new brand?

In our brand portfolio, we position the "Tokyu Brand Hotels" as a comprehensive brand that spans from business to luxury accommodations. The Tokyu name holds strong brand value in Japan and enjoys broad recognition, though it’s also closely associated with Shibuya and our railway business. While we’ve earned a high level of public trust as a railway company, we see tremendous potential to evolve the Tokyu brand further as a hotel operator. Looking ahead, we aim to strengthen our presence in regional areas and expand internationally through strategic partnerships with global brands, ultimately building a more diverse and dynamic portfolio.

What sets us apart from overseas hotel brands is our deep involvement in urban development. We’ve long played a key role in supporting regional communities with a focus on local well-being. By listening carefully to the voices of local business owners and residents and incorporating their input into our hotel operations, we go beyond simply constructing facilities—we strive to create vibrant, sustainable communities that are attractive to both visitors and locals alike.

In 2025, more travelers are actively seeking environmentally conscious accommodations during their trips. Your company has been at the forefront of this trend, implementing various initiatives to promote sustainable hospitality—one of which is the Green Coin program. Could you tell us more about the concept behind Green Coin and the impact it has had so far?

The Green Coin initiative began in 2001 and has now been running for over 20 years. At the time, environmental awareness and concepts like the SDGs were not as widespread as they are today. Even so, our predecessors were already deeply conscious of the responsibility hotels have toward both the local community and the natural environment.

This program encourages guests to engage in more ethical and sustainable behavior. In today’s society, making ethical choices is not only encouraged—it also enhances guest satisfaction and fosters a deeper understanding of responsible living.

In addition, we work with non-profit organizations on forest revitalization efforts. Our “forest-making” activities aim to restore woodland environments, and our staff actively participate as volunteers. This helps cultivate stronger environmental awareness and supports a broader shift toward sustainable thinking.

What makes Green Coin particularly compelling is its deep integration with our business operations. While many ESG or SDG initiatives tend to be treated separately from a company’s core business, our program is directly aligned with our business model and environmental goals. That’s why we’ve been able to sustain this initiative successfully for more than two decades.

Today, many travelers visiting Japan are looking for more than just a place to stay—they’re seeking richer, more immersive experiences. Your “Stream” brand is designed to meet this demand, with each property staffed by local experts who recommend carefully curated experiences rooted in the surrounding area. How does staying at a Tokyu Stream Hotel help guests form a deeper connection with the destination they’re visiting?

What may seem commonplace in daily Japanese life can be refreshingly unique for foreign visitors. Many travelers research their destinations online or through social media before arriving in Japan, but during their stay, it’s not unusual for guests to share their own discoveries and experiences with our staff. What used to be a one-way flow of information—from staff to guest—has evolved into a two-way exchange. These conversations are generating new value and, in many ways, signaling a new era for Japanese hospitality.

For example, something as routine for locals as making traditional pickles can be surprisingly engaging for international visitors. Many Japanese pickles are made using rice bran, and we’ve found that this traditional method fascinates our guests. In fact, many are proud to share their new knowledge afterward, seeing it as a meaningful connection to Japanese culture.

We’re also seeing an increase in the number of local tourist information centers throughout Japan. These efforts are part of a broader push by regional governments to attract visitors and ease over-tourism in major hubs like Tokyo. One noteworthy initiative is the Japan Heritage program, in which the government designates and promotes unique cultural assets tied to specific regions. We’re proud to support this initiative and, to the best of my knowledge, we may be the only hotel operator actively participating in the program.

Looking ahead, what are the next steps your company plans to take to further grow your business and shape its future?

We recently launched our “Storyline” brand, introducing condominium-style residences for long-term stays, beginning in Okinawa. As you know, Okinawa is a very popular tourist destination and is often compared to Hawaii. While it attracts a high volume of visitors, most tend to stay only a few days. However, with the continued rise in inbound tourism, we’re now seeing an increase in long-term visitors. By offering this type of accommodation, we’re expanding our portfolio while meeting the evolving needs of these guests.

From a location strategy standpoint, we are placing Storyline condominiums near our existing resort properties. Our resorts are particularly popular among families, and we see many repeat guests—some even make reservations for the following year right after their stay. Going forward, we plan to complement these resorts with new condominium offerings. This will help us improve operational efficiency and broaden our customer base.

THE SENAGAJIMA STORYLINE

Our research shows that your company has been active internationally, including the partnership with Pan Pacific. Could you share any recent developments regarding these global brand collaborations? Additionally, as part of your international strategy, are there any new markets or regions you are currently focusing on for future expansion?

What makes our Shinjuku hotel unique is that 90% of its guests are inbound travelers. The upper floors are designed for luxury stays, while the middle and lower floors cater to lifestyle-focused guests. Despite being open for only two years, it has already established itself as our flagship property—even though it doesn’t carry the Tokyu name.

While the Tokyu brand is exceptionally strong in the domestic market, international expansion requires a different strategic approach. For example, major global hotel chains like Marriott and Hilton each have membership bases numbering around 200 million. Competing on that scale as a standalone brand is extremely difficult. Our success overseas will depend heavily on how well we can leverage alliances and membership networks.

Interestingly, Pan Pacific was originally a Tokyu brand. It separated from the Tokyu Group in 2000 but now enjoys strong brand recognition across Asia, particularly in Singapore. Our parent company, Tokyu, is focused on Asia as the primary region for international expansion. In line with that strategy, we are deepening our partnership with Pan Pacific, starting with the Asian market.

Pan Pacific is also a member of the Global Hotel Alliance (GHA), a network designed to help mid-sized hotel brands compete with the world’s major chains. In this context, partnerships are essential to achieving success. Our Shinjuku property stands as a clear example of what can be accomplished through such strategic alliances.

Online travel agencies (OTAs) like Agoda and Booking.com often charge high commission fees for bookings made through their platforms. In response, some hotel groups are increasingly focusing on boosting direct bookings through their own websites. How important is it for Tokyu Hotels & Resorts to increase direct bookings via your own platform?

Membership is a key part of our strategy. Currently, we have around one million members, but we recognize the need to strengthen this area further. As a first step, we’ve begun integrating the Global Hotel Alliance’s Discovery membership program, starting with our hotels in Shinjuku and Kyoto.

Across the broader Tokyu Group, we’ve also launched a cross-group subscription platform. Several of our hotels are already participating, allowing members to book stays through the service. One of the key benefits of this subscription model is that guests can enjoy more affordable rates, especially during off-peak periods like weekdays. Looking ahead, we plan to expand this platform beyond just accommodations, integrating regional services and experiential offerings to create a more community-based model.

As for future prospects, we hope to see increased support from the Japanese government. One of the biggest challenges we face is a shortage of labor. Like many Japanese companies, we are actively recruiting talent from countries such as the Philippines, India, and across Southeast Asia. However, under current immigration regulations, it's difficult for foreign workers to remain in Japan long-term. Without regulatory reform, there is a real risk that many skilled individuals will choose to work in more accessible regions like Europe or Australia instead.

If we were to return for another interview on the final day of your presidency, what goals or dreams would you hope to have accomplished by that time?

The COVID-19 pandemic dealt a serious blow to Japan's hotel industry. Many people left the sector during that time, and the resulting labor shortage continues to affect hotel operations nationwide. Fortunately, with the recent surge in inbound tourism, demand is recovering, and we're beginning to see encouraging signs across the industry. For our group as well, annual business revenue has reached approximately JPY 100 billion—a record high—and our profitability is also very strong.

That's why we believe now is the right time to reinvest in our people and our business. We've made the decision to raise employee wages and allocate more resources to strengthen our operational structure. Without reinvestment, we cannot sustain long-term growth.

If the labor shortage continues, there is a real risk that the entire industry could decline. I want to be part of the movement to change that trajectory. To make the hospitality industry truly sustainable, we must continue to offer Japan's distinctive brand of hospitality while also prioritizing the happiness of both our staff and our guests. I believe that ensuring the well-being of both sides is essential to the future of our industry.

On June 24, 2025, Jun Murai retired from his position as president of Tokyu Hotels & Resorts and returned to Tokyu Corporation.

For more information, please visit their website at:  https://www.tokyuhotels.co.jp/en/index.html